The California Public Employees’ Retirement System (CalPERS) has almost doubled its investment in a Chinese office and retail mall strategy.
The US pension fund has added $300m (€269.1m) to the ARA China Long Term Hold entity, according to a board meeting document.
CalPERS has placed a value on its investment in the ARA Asset Management partnership at $327m through the first quarter of this year, as stated in a pension fund document.
Year to date, the portfolio has returned 5.5% for CalPERS.
CalPERS increased its investment to China Investment Partners – ARA’s single-investor fund – to $830m in 2013, having committed an initial $500m.
CalPERS has also invested in ARA’s pan-Asian real estate funds, ARA Asia Dragon Fund I and ARA Asia Dragon Fund II.
The latest fund invests in high-quality office buildings in central business districts, as well as retail malls in well-located, densely populated suburbs.
The manager typically invests in first and second-tier cities in China and Hong Kong.
CalPERS has also made a $310m allocation to the Land Management Company, managed by IHP Capital Partners.
In a board meeting document, the pension fund said the value on Land Management Company was at $590m, at the end of the first quarter of this year.
The net rate of return on the portfolio was 16.25%.
IHP Capital invests in the construction of housing, in some cases providing capital on individual projects.
Master-planned developments to single-family and multi-family communities in the US are targeted by the manager.