California State Teachers Retirement System (CalSTRS) is investing €400m in European logistics with an unnamed joint-venture partner.

The investment will see the US pension fund own a 95% stake in a new entity called CP Logistics Europe.

The joint-venture partner, which CalSTRS did not name, will own the remaining 5%.

Principal Real Estate Investors, which did not comment, is advising CalSTRS on the investment.

The joint venture will invest in a variety of industrial assets in Germany and central Europe, CalSTRS told IPE Real Estate.

CalSTRS said the strategy will span the risk-return spectrum, including core, value-add and opportunistic investments.

It is targeting minimum returns of 7% for core, 7.5% for value-add and 10% for opportunistic.

The joint venture could develop and redevelop non-core properties into core assets. 

The pension fund and its consultant, The Townsend Group, will monitor the portfolio for instances when changes to the classification of investments are warranted.

Reclassifications must be mutually agreed by staff and the consultant and then reported to the pension fund’s investment committee.

CalSTRS is also investing in a real estate debt fund that will target the US and Europe.

It is committing $200m (€190m) to the TCI Real Estate Partners II, which will provide first-mortgage debt on high quality properties in major markets.

In 2014, CalSTRS invested in the first TCI Real Estate Partners fund.

Topics

Related Companies