LACERA on track with real estate portfolio reduction plan

Los Angeles County Employees Retirement Association (LACERA) has increased its industrial real estate exposure by $35m (€31.4m) and sold $263m worth of apartments as part of an ongoing plan to reduce and rebalance its real estate porfolio.

As previously reported, the pension fund plans to reduce its portfolio by $1bn and shift it away from separate accounts in favour of funds, while selling mostly apartment assets.

In a board meeting document, the $55.9bn pension fund said that, following the latest disposal, it intends to sell an additional $501m worth of assets in the next fiscal year beginning in July.

According to industry sources, this is a contrarian move as not many large US public pension funds are reducing their apartment exposure.

LACERA said it also plans to sell underperforming assets within its $6.3bn real estate portfolio and has already sold $230m.

The pension fund intends to target either value-add or high-return US funds as well as making additional investments in open-ended core funds.

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