Los Angeles County Employees Retirement Association (LACERA) plans to reduce its exposure to apartments and increase its weighting to industrial properties.
The $56bn (€48bn) pension fund said in a board meeting document that it intends give its separate account managers $550m to invest in US real estate during the next fiscal year.
At the same it plans to sell $700m of assets held in separate accounts, including residential assets.
Earlier this week, IPE Real Assets reported that LACERA had sold half of a $500m multifamily real estate portfolio to an institutional investor advised by PGIM Real Estate.
LACERA is currently underweight industrial assets and is overweight apartments relative to its benchmark. It intends to maintain its current exposure to office and retail.
It has a number of non-discretionary separate accounts managed by Capri Capital, Clarion, DWS, Heitman, Invesco, Stockbridge and TA Associates.
The pension fund has allocated $450m for core and value-add real estate, and $100m for high-growth transactions during the 12 months from July this year.
LACERA will also reinvest some of the proceeds of sales in core and core-plus real estate funds in the US.
LACERA’s investment staff has also recommended making one to three commitments to European and Asia-Pacific real estate funds, up to $100m each. It will also consider smaller commitments to Latin American funds.