Los Angeles Fire and Police Pensions (LAFPP) has set aside up to $120m (€101.3m) in fiscal 2021 to invest in non-core real estate funds.
The Townsend Group, the $25bn pension fund’s real estate consultant, said in a meeting document that as part of a new annual investment plan beginning 1 July, LAFPP will be considering blind pool funds which target distress and thematic investments.
LAFPP also plans to target industrial and multifamily real estate due to the asset classes’ less dependency on large gatherings.
LAFPP is expected to steer clear of committing to core open-ended funds due to the uncertainty surrounding real estate property values as a result of the COVID-19 pandemic.
The pension fund is planning to re-balance is existing core open-ended manager lineup by redeeming its $56.2m investment from the Jamestown Premier Property Fund and the $71.2m from Heitman America Real Estate Trust.
The managers have currently suspended redemptions in an effort to protect their assets.
The proceeds from the redemptions, which could be received next year, will be placed into the RREEF Core Property Industrial Fund and the Principal US Property Account funds.
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