Los Angeles County Employees Retirement Association, Pasadena, Calif., adopted a one-year investment plan for its $4.2 billion real estate portfolio, said John McClelland, principal investment officer, real estate.
The $40.1 billion fund decreased core property investments to 67% of the portfolio, from 73%, and will move the money to non-core investments as properties are sold. Some $750 million in sales are expected during the funds fiscal year ended June 30, Mr. McClelland said. It will also commit $400 million to international real estate in the form of commingled funds investing in Europe and Asia. No RFP is currently being considered; the funds real estate consultant, Townsend Group, will assist staff in finding investment opportunities as needed.
The fund will also commit an additional $600 million to its $3.8 billion real estate separate account portfolio, to be managed by the funds six separate account managers: RREEF, TA Associates, Cornerstone, INVESCO, Emmes and Capri Capital Advisors.
Separately, the fund committed up to $25 million in Carlyle Europe Real Estate Partners III.