T
he Alaska Permanent Fund Corporation (APFC) is set to sell eight retail assets across Europe and the US, generating approximately $500m in sales proceeds. The planned disposals are driven by negative returns on its retail properties over the past five years.

    APFC expects to complete these sales during the upcoming fiscal year, starting July 1st. Additionally, the sovereign wealth fund plans to put more assets up for sale within the next two years after completing asset-specific initiatives and repositionings.

    With a current real estate allocation of 11.5%, APFC does not plan to implement a pacing plan for fiscal year 2026, as it slightly exceeds its 11% target. The fund is also considering divesting real estate investment trusts (REITs) from its portfolio.

    APFC's deputy private markets CEO, Allen Waldrop, noted that removing REITs would create flexibility in the investment team's decision-making process regarding real estate allocation. Proceeds from the sale could be used to adjust real estate targets, pay down debt, or redeployed into higher return opportunities.