Alaska Fund Real Estate Pivot Targets Office and Retail Selloff
Fund Slashes Real Estate Holdings by 50 A seismic shift is taking place with Alaska's $81 billion permanent fund embarking on an aggressive real estate exit strategy. This approach targets distressed office and retail properties. The fund's pivot highlights concerns over sector vulnerabilities and the need to bolster portfolio resilience. The sovereign wealth managers plan to overhaul asset classes, slashing real estate holdings by up to 50% within the next five years. This move includes a $500 million portfolio reduction. It's one of the most significant institutional real estate exits in recent memory. In the past year, the real estate segment delivered just a 0.56% return. This underperformed dramatically against the fund's overall 7.03% annual return. Trustees overseeing the $9.6 billion real estate portfolio have initiated immediate action. Eight properties in the U.S. and Europe are earmarked for disposal. Further asset sales are planned within 24 months. Aging of...