JP Morgan Sells Over $ 3 Billion In Assets, Satisfies Core Fund Redemptions | New

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JP Morgan Asset Management’s core US open-ended real estate fund has sold more than $ 3 billion (€ 2.59 billion) in office and retail assets since the start of the COVID-19 pandemic and no longer has a redemption queue.

The JP Morgan Strategic Property Fund, which has seen a number of US pension fund buyouts – most recently involving the Arkansas Teacher Pension System – succeeded in rebalancing its portfolio and stemming certain outflows.

According to a report leaked by the Alaska Retirement Management Board (ARMB), the fund has sold $ 3 billion in office assets since the start of the pandemic, with an additional £ 450 million under contract. An additional £ 500million of business assets have been sold or are under contract.

Sales and new capital raised helped JP Morgan solve an exit queue that at its peak was over $ 1 billion.

ARMB is one of the pension funds that have decided not to withdraw from the fund. He will keep his $ 159.5 million investment in the fund after canceling a redemption request.

According to a board meeting report, ARMB made this decision due to “a change in market conditions and a desire to maintain exposure with a manager in good standing.”

The assets JP Morgan sold included office buildings in Seattle, Boston and Dallas, according to sources close to the fund, while the commercial properties sold were located in Southern California.

The fund seeks to make new investments in industrial real estate and single-family rental real estate.

He partnered with Black Creek in 2018 to invest $ 400 million in industrial property and has since set a goal of increasing the size of the joint venture to $ 1 billion.

JP Morgan is also expanding the fund’s single-family joint venture with American Homes 4 Rent into new markets including Nashville, Atlanta, Charlotte, Salt Lake City and Phoenix.


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