The California State Teachers Retirement System (CalSTRS) could invest up to $2bn (€1.48bn) in global real estate over the next 12 months.
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.
CalSTRS, advised by The Townsend Group, will invest in both existing core assets and puruse a build-to-core strategy through developments and re-leasing vacant properties.
When investing outside the US, CalSTRS will focus on relatively low-risk assets that generate cash flows.
The pension fund is likely to use a combination of separate accounts, joint ventures and funds.
It already works with a number of investment managers, including BlackRock, Clarion Partners, Invesco Real Estate, LaSalle Investment Management, Principal Real Estate Investors, Heitman, JP Morgan Asset Management, Lionstone Group and Thomas Properties Group.
CalSTRS is looking to introduce more liquidity into its real estate portfolio, mainly through investments in open and closed-ended funds, but also potentially by investing in real estate investment trusts (REITs) through separate accounts.
- American Investors
- Asset Allocation
- California State Teachers Retirement System
- Closed-ended funds
- Investment Strategies
- Investment Vehicles
- Joint ventures
- Latin America
- Open-ended funds
- Real Estate
- Separate accounts
- US Investors