The Los Angeles Department of Water and Power (LADWP) Employees’ Retirement Plan is planning to invest up to $500 million in new real estate strategies in 2023, at the recommendation of StepStone Real Estate.
According to the pension fund, this strategic plan would maintain the 10 percent target allocation in 2023, with the lion’s share going to core real estate — $75 million to $300 million (or one-to-three investments). The plan also calls for up to $150 million to be placed in value-add investments (up to two investments), and up to $125 million to be placed in opportunistic investments (up to two investments).
StepStone further projects that with an overall plan growth rate of 6.5 percent, up to $200 million should be placed in core real estate, up to $150 million placed in value-add and up to $125 million placed in opportunistic strategies in 2024 to stabilize at or near the 10 percent real estate target allocation.
As for the pacing plan, StepStone r
