Los Angeles City Employees’ Retirement System (LACERS) expects to make $300m (€263.9m) worth of real estate in fiscal 2026, according to the pension fund’s board meeting document.
The Townsend Group, the pension fund’s investment consultant, disclosed in the meeting document that the real estate plan for the year starting 1 July will involve allocating up to $100m to core and core-plus funds, with another $200m earmarked for non-core strategies.
The proposed commitments to core and core-plus funds include exploring secondary market opportunities with existing top-performing managers if available at a discount to current valuation and also investing in new blind pool open-end funds that are focused on acquiring high-quality assets at attractive valuations.
The non-core portion of the pension fund’s fiscal 2026 real estate investment plan expects to capitalise on market shifts by exploring secondary and recapitalisation investments.
The plan also involves focusing on increasing exposure to specialised sectors such as data centres, industrial outdoor storage, build-to-rent, cold storage and manufactured housing.
For the current fiscal 2025 year-end, which ends 31 July, LACERS set a real estate pacing target of up to $450m.
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