CalSTRS doubles Kildare investment as part of $800m property push
California State Teachers Retirement System (CalSTRS) has made $800m (€614m) in new real estate commitments, including a doubling of its investment in the Kildare European Partners I fund.
The pension fund has committed an additional $100m to the European fund, having committed the same amount in October last year.
The pension fund said European real estate was at a favourable point in the market cycle and cited the Kildare’s focus on quality assets in Western European markets.
Kildare, which was founded by former Lone Star Funds president Ellis Short, is seeking a total equity raise of at least $1.5bn for the fund with a cap of $2bn.
The fund is investing across sectors and real estate-related assets, including individual properties and entity level investments with real estate operating companies.
CalSTRS has placed its investment in European Partners I in the opportunistic sector of its real estate portfolio.
The commitment was made on the recommendation of its real estate consultant Courtland Partners.
The pension fund is projecting a return on the commingled fund in excess of 13% after fees.
CalSTRS also committed $200m to Jamestown Premier Property Fund, a $1.08bn core open-ended fund, and $200m to the PCCP Credit VI, a core debt fund for which PCCP is seeking to raise $750m.
CalSTRS also invested in two value-add funds; it committed $200m to the $2.1bn CBRE Strategic Partners US Value 7, and $50m to the $1bn Brookfield Fairfield US Multifamily VA Fund II.
It commited further $50m to ResCal, a $255m joint venture with Resmark to develop for-sale single-family housing and to buy residential land.