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JPMorgan tells Sarasota pension board Strategic Property Fund showing recovery; sales, redemptions and redeployments under way
Summary
JPMorgan Asset Management reported gains and portfolio repositioning in its Strategic Property Fund, citing recent high-value dispositions including a $1.6 billion NorthPark Mall sale and noting a mix of redemptions and new capital calls that the firm said it is deploying into industrial and alternative sectors.
Representatives of JPMorgan Asset Management updated the Sarasota Police Officers Pension Board of Trustees on the performance and repositioning of the Strategic Property Fund, emphasizing recent dispositions, incoming capital, and a plan to redeploy proceeds into industrial and extended sectors.
Katie Hammond, a client adviser with JPMorgan Asset Management, and colleagues Caitlin Russell and Zainab Poni presented the fund’s recent results and strategy. JPMorgan said the Strategic Property Fund has delivered consecutive quarters of outperformance versus its benchmark and that the fund has been actively transacting to reposition its holdings.
Presenters highlighted two recent landmark sales: 1345 Avenue of the Americas (an office disposition) and a $1.6 billion transaction involving NorthPark Mall in Dallas. JPMorgan reported it expects to complete about $3 billion in sales in 2025 (bringing a combined 2024–25 disposition volume to about $6 billion) and said it has called roughly $1.75 billion of new capital to invest at attractive pricing.
On investor liquidity, JPMorgan said the fund has both paid redemptions and received rescissions of previously submitted redemptions. The firm reported it expects to have paid approximately $2.5 billion in redemptions by year end and described the current redemption queue at roughly $2.1 billion (about 10% of the fund) — a level JPMorgan said is lower than some peer indices.
Panelists said the fund is redeploying capital into higher-conviction areas including industrial outdoor storage and truck terminals, build-to-rent single-family rental communities, and self-storage, with a target to grow extended-sector allocation toward 20% over the next few years. JPMorgan told trustees it aims to invest about $1 billion in those sectors in the current year.
Trustee questions focused on whether rescinded redemption activity and new capital is being redeployed or paid out. Katie Hammond replied that it is a combination: proceeds are being used both to meet redemptions and to fund new investments. JPMorgan characterized the firm’s fee-credit program as a driver of rescissions from investors.
No board action was required; the presentation was informational. JPMorgan offered to provide additional data and follow-up on liquidity and specific dispositions upon request.
