GLOBAL - California State Teachers Retirement System (CalSTRS) has expanded into the residential housing sector for the first time with a $250m (€186m) allocation.   The pension fund has split the capital commitment evenly between two separate joint ventures with IHP Capital Partners and ResCal Investments, respectively.   The total size of the IHP Partners VI venture  is $128.7m, meaning CalSTRS will own 97% of the assets and IHP Capital Partners will own 3%.   The principal investment objective of the venture is to focus on homebuilder finance, land acquisition and development projects.   The ResCal venture will focus on single-family housing and acquisition and development projects. CalSTRS has taken a 98%, taking total equity to $127.6m.   CalSTRS invested its capital after obtaining approval from Bard Consulting, its independent real estate fiduciary.   CalSTRS projects returns on these two investments to be in the mid-teens, net of fees, assuming a five-seven-year holding period.   The move into the residential sector was made during the third quarter, during which time the pension fund made two other real estate investments, including an $18.5m senior debt investment in a fund managed by RREEF.   RREEF is raising $100m of capital to improve to reduce gearing and support the portfolio of diversified of global assets in its Global Opportunity Fund II.   The investment by CalSTRS will generate a yield of 22.5% with a current pay of 12.5% and will be placed in the pension fund's core real estate portfolio.   Courtland Partners acted as its independent real estate fiduciary on the investment.   CalSTRS awarded a new $100m allocation to an existing joint venture with Thomas Properties Group.   The capital will be used to provide working capital and to pay down loans on assets in the venture.   The pension fund is targeting an initial rate of return (IRR) of 12% net of fees over a five-seven-year holding period.   CalSTRS had a real estate portfolio valued at $13.8bn at the end of September, equating to a 9.97% allocation of total assets under management. The target allocation for real estate is 11% but can range between 9% and 15%.