Los Angeles Fire and Police Pensions (LAFPP) plans to rebalance its $633m (€551m) US real estate porfolio managed by AEW.
The pension fund wants to make up to $100m (€87m) in new acquisitions during the 2019 fiscal year, while selling some assets, according to a board meeting report.
AEW should focus on the 20 largest urban markets by population and assets that are supported by growing industries like technology, health and education. There will be a particular focus on industrial, multifamily and high-grade retail assets.
There are plans to sell older assets in secondary markets, including the Shadeland Station office asset in Indianapolis and a St Louis industrial portfolio.
Four other assets being evaluated for possible sales are office buildings in Kennett Square, Pennsylvania, Huntersville, North Carolina, and Minneapolis, and a retail complex in Tulsa, Oklahoma.
The non-discretionary separate account has been managed by AEW since it was selected late last year to take over two consolidated portfolios, previously managed Heitman and Sentinal Real Estate, respectively.
The portfolio had a gross asset value of $633m and net investment value of $461m at the end of June.
It consists of 15 investments encompassing 3.3m sqft of commercial space and 1,141 apartment units.