Los Angeles Water and Power Employees’ Retirement Plan is to end its global real estate investment trust REIT mandates.
The pension fund, which has been an investor in REITs since 2012, said in a meeting document that it plans to terminate the relationship with Dimensional Fund Advisors and Heitman Real Estate Securities which were due to expire in February 2025 and September this year respectively.
Los Angeles Water and Power said the reason for ending its $86.3m (€80.3m) worth of REIT mandates was because the benefit to the pension fund’s real estate portfolio has diminished over time due to the real estate portfolio’s growth and complexity.
Los Angeles Water and Power expects to reinvest redeemed capital into open-end core/core-plus funds to help the pension fund maintain consistent exposure to core real estate.
Los Angeles Water and Power disclosed in the meeting document that it has approved three new $75m commitments into the TPG Real Estate Partners IV, LaSalle Asia Opportunity V and ACORE Credit Partners II non-core real estate funds.
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