Los Angeles Fire and Police Pensions (LAFPP) has hired Cohen & Steers Capital Management to invest in US real estate investment trusts (REITs).
The pension fund began searching for a new REIT manager earlier this year in a bid to diversify its domestic REIT portfolio.
Principal Real Estate Investors already manages a domestic REIT portfolio on behalf of LAFPP, valued at $345m. Cohen & Steers will take over $160m of the account.
Principal will continue to manage a $178m global REIT portfolio, while Alliance Capital will still oversee a second $113m global REIT portfolio.
Steve Dunn, executive vice president at Cohen & Steers, told IPE Real Assets: “We are thrilled to have been selected by the pension fund to run a portion of its domestic REIT portfolio and look forward to working with them in the future.”
Chris Henderson, a senior vice president at Cohen & Steers, said LAFPP was pursuing a “long-only strategy” for the portfolio, investing in REITs active in traditional property markets.
LAFPP benchmarks its domestic REIT portfolios against the FTSE NAREIT US Real Estate Index.
The pension fund was advised by its general investment consultant RVK.
Last month, LAFPP merged two real estate separate accounts and chose AEW to run the consolidated portfolio.