LACERS to invest up to $175m into real estate in 2016-2017

The $14 billion Los Angeles City Employees’ Retirement System is preparing to commit up to $175 million to real estate during 2016 and 2017 and up to $300 million by 2018, according to a presentation by the board’s real estate consultant, The Townsend Group.

The retirement system is overweight its 5 percent target to real estate with $859 million invested into the asset class, as of March 31, and has $983 million invested in the asset class when including unfunded commitments and pending redemptions, but is expecting several investments to liquidate from the portfolio in the coming years.

In 2016 and 2017, LACERS is expecting to invest up to $100 million in core real estate, divided between one to two commitments, and up to $75 million in noncore real estate, divided between one to four commitments. For its noncore commitments, the retirement system will target retail and industrial in the United States, and will reconsider European commitment. LAC