UNITED STATES - California Public Employees Retirement System is the latest pension fund to further invest in Asian real estate after approving a $200m (€149.2m) commitment to the Asia Real Estate Securities Opportunity Fund.
Jane Delfendahl, an investment officer on the real estate team at CalPERS, said the fund is listing this investment within the ‘opportunity’ section of its real estate portfolio.. She
"This investment allows us to take advantage of all the companies in Asia that are going public. This is a good way to invest in those countries with companies that already have a solid footprint in the region as, at this time, we don’t think that there is too much capital going into the Asian real estate markets."
The pension fund is expecting to achieve a 15- 20% net return on its commitment long-term alongside other investors who are seen as holding traditional real estate assets.
"The companies will own a mixture of real estate that will include both commercial and residential assets," Delfendahl said.
Aetos Capital Management, the company behind the commingled offering, is still looking for additional investors for the pooled fund which has an equity raising limit of $2bn.
Around 70% of the fund will be in public real estate securities while the broader remit is to seek out investment opportunities in China, Southeast Asia and Japan.