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Pension Funds

LACERS outlines 5-year real estate pacing plan

Los Angeles City Employees’ Retirement System plans to commit $725 million to $975 million to real estate investments in the five years through June 30, 2023.

Los Angeles City Employees' Retirement System plans to commit $725 million to $975 million to real estate investments in the five fiscal years through June 30, 2023, to reach its 7% target real estate allocation, according to the $17.8 billion pension plan's real estate investment plan.

Under its plan, pension fund officials expect to invest $145 million to $195 million annually over the next five years. In fiscal year 2020, LACERS officials would target $40 million to $60 million to one to two funds in core real estate and $100 million to $110 million to two to three funds in non-core real estate.

LACERS officials could consider increasing and diversifying its industrial exposure, as well as making tactical investments in urban office assets located in high-growth markets as part of its $222 million non-core real estate portfolio. LACERS has $787 million invested in real estate for a 4.4% actual allocation, with $545 million in core real estate and $20 million in timber. LACERS' real estate consultant Townsend Group assisted.