UNITED STATES - California Public Employees Retirement System is continuing to pursue its international real estate investment strategy by placing $700m (€493.8m) in real estate commingled funds generating targeted net IRRs of 20%.
Global Innovation Partner will receive an investment of $500m to the GI Partners Fund III, which is looking to invest in all major property types of middle-market asset intensive businesses or portfolios in North America and Western Europe, but which are considered to be underpriced relative to their intrinsic or fundamental values.
CalPERS' remaining $200m is being placed in the JER Latin America Fund I, an opportunity fund investing in Mexico and Brazil among other countries but which has a specific focus on housing and retail.
In both cases, the funds are aiming high as GI III is hoping to raise $2.5bn in capital JER Partners is looking to bring in $750m.
The funds were selected at the pension fund board's investment committee meeting on 15 September, at the same time asthe pension fund approved three new firms to its spring-fed pool of consultants.
Pension Consulting Alliance, David L. Bonuccelli & Associates and Stockbridge Capital Group have all been added to that group as the pension fund felt it needed more companies under its spring-fed pool of consultant strategy to meet the changing needs of the real estate investment programme.
Firms placed in the programme have expertise in niche property types or they have a wide array of real estate expertise, as is the case with Stockbridge which has experience as principals in real estate investments and capital markets knowledge.