GLOBAL - The California State Teachers Retirement System (CalSTRS) has made two real estate investments totaling $215.5m (€177m) during the first quarter, as market transactions slowly increased from historically low levels.
The larger of the two investments was the purchase of $194.2m of debt on the City National Plaza office building in downtown Los Angeles.
CalSTRS said it was aiming to de-leverage the asset - reducing the debt on the property to less than 50% - and move it to the core sector of its real estate portfolio.
The pension fund made the investment though its separate account relationship with Thomas Property Group.
The investor completed the transaction on the recommendation of its independent fiduciary Bonuccelli & Associates.
The other investment involved buying debt on a portfolio of industrial assets in Florida held by The Fortress Group.
CalSTRS is investing $21.3m of a total capital raise of $325m.
The Fortress Group will be the manager on the commingled fund.
The pension fund made its investment after receiving a positive recommendation from independent fiduciary Courtland Partners.
CalSTRS made a $100m investment into the Fortress Florida Co-Investment in February of 2007.
