Los Angeles Water and Power Employees’ Retirement Plan (WPERP) is planning to invest $225m (€201.4m) in real estate funds this year.
The pension fund is expected to commit between $60m to $100m to a mixture of core, value-add and opportunistic strategies, according to its meeting document.
The planned investments for core assets include a mixture of either core-plus or stabilised non-traditional property types.
For value-add, the pension fund will consider some managers that acquire assets at below market value and discounts to replacement cost and subsequently manufacture assets.
It will also consider strategies that are investing in high growth and demographically favourable markets, including the southern region in the US and some European markets.
The plan for opportunistic would be to target investments that cover distressed capital structures as well as some secondary strategies.