By Muskan Arora

Los Angeles
Fire and Police Pension disclosed a $450m pacing plan for its real estate
sleeve for 2025, divided between core and non-core sleeves.

The system,
along with consultant Townsend Group, has set aside up to $150m for its core
real estate allocations, with a focus on high conviction thematic opportunities,
as discussed in its recent meeting.

This
decision represents a significant change from last year when the system
considered commitments of $65m but failed to approve them due to “continued
valuation adjustments in core funds.”

Further, the
system is looking at “attractive secondary market opportunities for
advantageous entry into core funds,” as no transactions were pursued last year.

The
remaining $300m has been set aside for non-core real estate portfolio, as the
system aims to build relationships with top performing managers.

Within non-core
RE portfolio, LAFPP will make commitments to four to five new investments with
a ticket size of $60m to $70m per allocation.

This is a
high amount than last year, when the system had targeted $224m worth of investments.

The system
made three commitments of $40m commitments to WCP NewCold III, Principal Data
Center & Growth Fund, and Jadian Real Estate II, last year.

LAFPP is targeting
a $75m re-up commitment to a non-core fund in FY2024.

The non-core
strategy will focus on niche property sectors, including data centers,
single-family and build-to-rent residential, industrial outdoor storage and
secondaries.