Los Angeles Water and Power Employees’ Retirement Plan has approved a $100m (€97m) commitment to FPA Multifamily’s core-plus US multifamily real estate fund.
The pension fund disclosed in a meeting document that the commitment made to the FPA Core Plus Fund VI fund comprised an $80m investment from the Retirement Fund and $20m from the Retiree Health Benefits Fund.
Fund VI targets a net internal rate of return of 9% to 11% with leverage planned at 50%.
The commitment is part of up to $700m Los Angeles Water and Power plans to invest in real estate this year.
The pension fund already placed $75m each into Prologis Targeted US Logistics Fund, Cerberus Institutional Real Estate Partners VI, LaSalle Asia Opportunity VI, ACORE Credit Partners II and TPG Real Estate Partners IV funds.
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