California State Teachers’ Retirement System (CalSTRS) has been seeking to increase its exposure to real estate debt, offices and property funds via the secondary market.

As part of more than $2bn (€1.74bn) committed to real estate strategies in the second half of 2019, the $252bn pension fund allocated $648m to real estate debt investments.

CalSTRS confirmed to IPE Real Assets that it had committed $300m to 3650 Cal Bridge Lending, a real estate debt joint venture it established with 3650 REIT in 2018.

The pension fund said it had also committed $198m to PacificCal Debt III, a joint venture with PCCP, and increased its existing investment in an open-ended real estate debt fund managed by CrossHarbor Capital Partners by $150m.

CalSTRS also allocated $300m of new capital to BCal II, an existing joint venture with Beacon Capital Partners that invests in core US offices, and committed $300m to the office-focused DivcoWest Fund VI.

The pension fund is also investing in real estate funds on the secondary market, having set up a $400m separately managed account with Blackstone Strategic Partners.

Other commitments in the second half of 2019 included a $300m allocation to StradaCal, a joint venture targeting core apartments and mixed-use assets in the San Francisco Bay Area and West Coast markets.