Alecta Pensionsforsakring, Stockholm, is bringing its domestic real estate investments in-house as it works to lower manager fees and increase allocations.
The fund's 4.8% allocation to Swedish real estate and domestic real estate joint ventures will be managed in-house by Alecta Fastigheter, a real estate unit within Alecta. The change will take effect in 2021.
Most of Alecta's Swedish real estate portfolio is currently managed by Newsec AB. A small proportion of the real estate allocations will still be externally managed. Details were not provided.
The 928 billion kronor occupational retirement plan provider invests 45 billion kronor in real estate in Sweden and 55 billion internationally. Executives plan to increase the total allocation to real estate to 20% from 12% over the next five years, a spokesman said.
"The goal is to grow in the coming years both through acquisitions and development, in combination with active management and a large customer and sustainability focus," Lena Boberg, incoming CEO at Alecta Fastigheter AB, said in a news release. Ms. Boberg was appointed to the role in January and starts in June.
"By incorporating Alecta Fastigheter AB, a larger platform is created for Alecta's real estate transactions so that we can increase the scalability and at the same time continue to manage our clients' pension money for as low a fee as possible," Hans Sterte, head of asset management and vice-president of Alecta, added in the release.