Los Angeles Fire and Police Pensions (LAFPP) has decided to divest $150m (€137.6m) from its real estate investment trust (REIT) portfolio to help rebalance a portion of its overall real estate holdings.
The pension fund believes that selling part of its $1.3bn REIT portfolio is the most efficient way to rebalance its real estate portfolio, compared to selling individual assets in separate accounts or reducing its positions in funds.
LAFPP disclosed in a meeting document that it will divest capital from two REIT managers, without naming the specific managers.
Three managers oversee LAFPP’s REIT portfolio: Cohen & Steers, Principal Real Estate Investors and Alliance.
Cohen & Steers manages the largest portfolio, valued at $519.1m, which is invested in US REITs. Principal Real Estate Investors manages two portfolios: a $331.8m US REIT portfolio and a $221.3m global REIT portfolio. Alliance manages a $190.6m REIT portfolio.
The REIT portfolio comprises 1.5% of the pension fund’s total real estate holdings.
The pension fund did not respond to a request for comment.
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