CalSTRS boosts real estate allocation target

California State Teachers Retirement System (CalSTRS) has made $600m worth of new US real estate commitments as it plans to increase its real estate target allocation next month.

In a board meeting document, the $229bn pension fund said it intends to increase its 12% real estate allocation to 13%.

CalSTRS can go three percentage points above or below its allocation target, and at the end of 2018 its $31.4bn real estate portfolio represented 14.6% of total assets.

Following $875m worth of real estate commitments reported earlier this month, CalSTRS has committed $300m to a US opportunistic housing partnership with Resmark, called ResCal Investments, where CalSTRS owns 98% of the joint venture.

The pension fund has also approved a $100m commitment to Lionstone Investments’ US Value-Add Five, a fund seeking to raise $600m. Lionstone US Value-Add Five will target US office, retail and mixed-use properties.

The other new commitment was a $200m investment in the newly formed 3650 Cal Bridge Lending joint venture with 3650 REIT.

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