Alecta Pensionsforsakring, Stockholm, is bringing its domestic real estate investments back in-house as it strives to reduce management costs and increase allowances.
The 4.8% allocation of the fund to Swedish real estate and national real estate joint ventures will be managed internally 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 part of the real estate allocations will always be managed externally. Details were not provided.
The SEK 928 billion provider of occupational pension plans invests SEK 45 billion in real estate in Sweden and SEK 55 billion internationally. Executives plan to increase the total allocation to real estate from 12% to 20% over the next five years, a spokesperson said.
“The aim is to grow in the years to come both through acquisitions and development, in combination with active management and a broad customer orientation and sustainability,” said Lena Boberg, new CEO of Alecta Fastigheter AB, in a press release. Ms Boberg was appointed to this post in January and begins in June.
“By incorporating Alecta Fastigheter AB, a broader platform is created for Alecta’s real estate transactions so that we can increase scalability and at the same time continue to manage our clients’ pension money for a fee as well. low as possible, ”Hans Sterte, director of asset management and vice president of Alecta, added in the statement.