The California State Teachers’ Retirement System (CalSTRS) has made $1.55bn (€1.34bn) of new investments in real estate during the second quarter of this year.

The largest was a $400m investment in CL Logistics Platform, a joint venture with Principal Real Estate Investors.

The pension fund holds a 95% interest in the $421m joint venture, which will pursue a value-added strategy in the US, with Principal owning the remaining 5%.

The assets will be transferred to the pension fund’s core portfolio once the properties have been stabilised.

CalSTRS expects to generate a long-term net return of between 9% and 12%.

The second largest real estate move by the pension fund was its $300m acquisition of the 60 London Wall office building in London.

The property was acquired via LaSalle Investment Management and is the pension fund’s first non-US separate account investment.

CalSTRS has also created a partnership with JP Morgan Asset Management to invest in office buildings.

The pension fund holds a 97% interest in the ParkCal joint venture with a $200m commitment. The balance of the venture is owned by the manager.

ParkCal will buy and investment in the development of well-located, dominant office assets in the US.

The pension fund also committed $250m to Datacore Fund, $50m to PCCP Credit VI, $100m to PAG Real Estate Fund, $50m to Heitman Value Partners III, $100m to PCCP Equity VII and $100m to Lone Star Real Estate Fund IV.

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