Los Angeles City Employees' Retirement System committed up to $25 million to Heitman Asia-Pacific Property Investors, a value-added real estate fund, according to the minutes of the board's June 27 meeting.
Officials at the $15.8 billion pension plan have invested with Heitman in the past. The plan previously committed $15 million to Heitman Value Partners, a U.S. focused value-added fund, in 2004; the fund dissolved in 2015 with a net internal rate of return of 4.9% and a net equity multiple of 1.3.
Real estate consultant Townsend Group assisted.
Separately, the board approved a real estate investment plan for the fiscal year started July 1that includes committing up to $100 million to non-core real estate and $20 million to core real estate. LACERS has a 5% real estate target, with 60% to core and 40% to non-core. It has $855 million invested in real estate, which is 5.8% of the total value as of Dec. 31. Its portfolio consists of $508 million in core real estate, $326 million in non-core and $21 million in timber.