Alaska Permanent Fund Corp., or APFC, sold its 50% stake in multifamily-focused residential developer and manager Simpson Housing for $1.4 billion to an undisclosed buyer, IPE Real Assets reported.

The sale marks the disposal of roughly one-quarter of APFC's $5.62 billion real estate portfolio, bringing its real estate exposure to 6.4%, well below its 11% real estate target allocation. The fund's new investment policy calls for real estate to make up 12% of APFC's asset portfolio by 2020 and 13% by 2021.

The publication, citing a board meeting document, said APFC plans to increase its real estate exposure by allocating more capital to global real estate fund managers. The fund expects to invest an additional $1 billion into real estate over the first six months of the year, having committed that amount during the second half of 2017.

The new policy involves deploying capital on higher-return funds and executing co-investments. The publication noted that APFC has historically invested mainly in direct core real estate investments through separate accounts.