Los Angeles Water and Power Employees Retirement Plan is aiming to commit $400m (€368.7m) to real estate investments in 2024, the pension fund’s real estate investment consultant StepStone stated in a meeting document.
In 2023, the pension fund finalised commitments to three non-core real estate funds, worth $225m in total. It also has a pending commitment of $75m to an unnamed core-plus logistics fund.
For this year, Los Angeles Water and Power plans to have most of its commitments in the core real estate sector. The pension fund expects to make two to three core real estate commitments in 2024, with a total value ranging from $150m to $300m.
Los Angeles Water and Power plans to commit to one value-add fund and one opportunistic fund in 2024, with each commitment being $75m.
The pension fund’s target property types will include industrial and cold storage logistics; multifamily, single-family, and affordable residential, and alternative sectors like data centres and life sciences.
It may also allocate capital to sectors experiencing refinancing-driven distress, utilising credit or equity strategies, according to the meeting document.
Most of Los Angeles Water and Power’s real estate investments in 2024 will target the US but it may consider some international markets like Japan, where growth projections appear more favourable, or distressed opportunities in Europe that offer potential rewards.
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