The California State Teachers’ Retirement System (CalSTRS) has sold its stakes in a US property partnership.

Parkway Properties said it has unwound its joint venture with CalSTRS in Austin, Texas, taking the latter’s 60% interest in San Jacinto Center and One Congress Plaza.

The deal gives Parkway full control of the two properties.

Parkway also said it has transferred its 40% interest in Frost Bank Tower, 300 West 6th Street and One American Center to CalSTRS.

Overall, the deals resulted in net proceeds of around $43.6m (€34.7m).

CalSTRS could invest up to $2bn in global real estate over the next 12 months, as reported earlier this year.

The US investor is planning to deploy between $1bn and $2bn in core and value-added strategies in the US, Latin America, Western Europe and Asia.

During the same period – the 2014-15 fiscal year – CalSTRS will reduce its exposure to opportunistic real estate investments.

Its real estate portfolio was valued at $22.6bn in March. Half of its investments are core, 20% value-added and 30% opportunistic. Only 8% of the portfolio is invested outside the US.

For Parkway, a US REIT, the deal was part of a move towards recycling capital, according to chief executive James Heistand.

“We continue to focus on recycling capital after we believe we have maximised value at a property, simplifying our ownership structure, and improving our capital structure,” Heistland said.