UNITED STATES - California Public Employees Retirement System (CalPERS) will announce next week $4bn (€3.25b) in new real estate investment commitments for the 2012-13 fiscal year.
The pension fund will reveal at its board meeting on August 13 that it has committed capital to a number of existing separate account partnerships, managed by CommonWealth Partners, General Investment and Development, Miller Capital Advisory, First Washington Realty and GI Partners.
Ted Eliopoulos, real estate investment officer at CalPERS, stated that the new commitments reflected the pension fund's real estate strategic plan to maintain larger relationships with fewer managers.
The partnership receiving the largest allocation was Fifth Street Properties, a US office separate account managed by CommonWealth Partners, which received $1.75bn, as previously reported.
Institutional Multifamily Partners, a US apartment separate account managed by General Investment and Development (formerly Western Multifamily), will receive an allocation of over $500m.
Institutional Mall Investors, a separate account managed by Miller Capital Advisory investing in regional malls, lifestyle centres and mixed-use projects, will be awarded $475m.
Global Retail Investors, a neighbourhood and community retail shopping centre strategy managed by First Washington Realty, will be given $277m.
The various CalEast Industrial partnerships, managed by GI Partners, will be awarded $325m of new capital.
All the partnerships are considered by CalPERS to be core income-producing real estate strategies. The pension fund intends to have 75% of its real estate portfolio invested in such strategies in the long term.
The pension fund at the end of June 2012 had a real estate portfolio valued at $21.1bn.
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