California Public Employees’ Retirement System (CalPERS) is looking to invest more than $1bn (€830m) in office and retail property markets in the US, despite weakening conditions in both sectors.
The $411bn pension fund is committing $1.1bn to two existing investment partnerships with CommonWealth Partners and First Washington Realty, according to a board meeting report.
Most of the capital ($800m) is going to Fifth Street Partners, a $6.4bn partnership with CommonWealth that invests in major office assets in the US.
The remaining $300m is allocated to Global Retail Investors, a $3bn partnership with First Washington Realty that invests in grocery-anchored shopping centres.
CalPERS has also issued more capital to existing industrial partnerships, committing $600m to Institutional Logistics Partners, managed by BentallGreenOak, and $700m to CalEast Solstice, managed by GI Partners.
Existing apartment partnerships have also been boosted, with $650m allocated to Institutional Multifamily Partners, managed by GID, and $200m allocated to Pacific Multifamily, managed by Pacific Urban Residential.
The majority of real estate assets acquired by CalPERS over the past 12 months have been in the industrial and residential sectors.
The pension fund made 43 acquisitions during that time, worth $2.6bn, of which 41% of were industrial transactions and 40% multifamily. Retail represented 17% and office just 2%.
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