Los Angeles Fire and Police Pensions (LAFPP) is committing $135m (€115m) to three real estate funds and could invest more in the asset class as it looks to maintain its allocation.
The pension fund is investing $35m in Unico Core Plus Partners, $50m in Heitman Asia-Pacific Property Investors and $50m in Almanac Realty Securities VIII, according to a board meeting report.
All three funds pursue specialist strategies: the Unico fund will focus on Seattle, Portland and Denver office markets; the Heitman fund has a value-add focus; Almanac invests in real estate operating companies in the US.
LAFPP has invested with Unico Partners before, committing $29.5m to Unico Partners I in 2014. The fund investment produced an 18.8% net internal rate of return and a 1.5 equity multiple.
The three commitments are part of LAFPP’s real estate and strategic implementation plan for 2018.
They are deemed necessary to maintain LAFPP’s 10% real estate allocation, as Townsend expects several of the pension fund’s existing investments to be liquidated over the next three years.