LACERS readies $175m for real estate strategies

Los Angeles City Employees’ Retirement System (LACERS) will need to invest up to $300m (€268m) over the next two years to maintain its 5% real estate allocation.

According to its real estate consultant, The Townsend Group, the $14bn pension fund is planning to invest $175m over the next 12 months.

Up to $100m will be allocated to core investments and to achieve this LACERS will make up to two fund commitments.

LACERS has existing holdings in a variety of core open-ended funds, including the Jamestown Premiere Property Fund and Principal US Property Account.

It has recently completed its exit from PRISA II, a core fund managed by PGIM Real Estate. The decision to redeem from its $46m interest in the fund was reported in IPE Real Estate in March.

Townsend said LACERS is evaluating a number of options for the remaining $75m – including emerging managers, sector-specific strategies and European opportunity funds – and could invest the capital in up to four funds.

Last week, IPE Real Estate reported that LACERS had backed the debut real estate fund of start-up firm Asana Partners.

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