Los Angeles Fire and Police Pensions (LAFPP) is planning to invest $450m (€405m) in real estate during its 2025 fiscal year, which ends in July next year.

According to a board meeting document by investment consultancy The Townsend Group, its pacing plan includes commitments totaling $150m for core real estate investments.

This represents a significant change from last year when the pension fund considered commitments of $65m but eventually failed to approve any of them due to continued valuation adjustments among the core open-ended funds.

LAFPP is considering investing in newly launched open-ended core funds with a view to acquiring high-quality properties at favourable valuations and to place capital with fund managers that specialise in alternative and niche sectors in which the pension fund has not invested previously.

The remaining $300m will be allocated to non-core real estate strategies, most likely through four to five commitments each ranging between $60m and $75m.

This is a greater amount than the previous fiscal year when LAFPP targeted $224m of commitments. It went on to issue three $40m commitments to WCP NewCold III, Principal Data Center & Growth Fund, and Jadian Real Estate II.

The pension fund is also planning a $75m ‘re-up’ commitment to a non-core fund that will count towards commitments issued in the 2024 fiscal year.

The non-core strategy for the new fiscal year is to be focused on niche property sectors, including data centres, single-family and build-to-rent residential, industrial outdoor storage and secondaries.

To read the latest IPE Real Assets magazine click here.

 

Topics