CalSTRS to invest $300m in Asia-Pacific with LaSalle, AEW
California State Teachers Retirement System (CalSTRS) plans to invest $1.2bn (€1bn) in Asian and US real estate.
The US pension fund has entered a joint venture with LaSalle Investment Management to invest in Asian and Australian property.
CalSTRS, according to its 2014 fourth quarter report, has committed $200m to the partnership, giving it a 95% stake. LaSalle has committed $11m, or 5%.
The partnership, which will invest in existing core assets and develop new ones, will be placed in the pension fund’s value-add portfolio.
With a maximum 65% of leverage, the joint venture could have up to $600m to invest in office, retail, multifamily and industrial sectors.
Real estate in Tokyo, Yokohama, Osaka, Nagoya, Fukuoka, Kawasaki, Sydney, Melbourne and Brisbane will be targeted.
CalSTRS has also allocated $100m to AEW’s Value Investors Asia II fund, its first investment with the manager.
A mixture of office, retail and residential properties in major gateway cities in Asia will be sought by the manager, with a focus on Hong Kong, Singapore, Taipei, Seoul and Shanghai.
AEW is planning a total capital raise in the range of $550m to $750m, according to a CalSTRS document. Debt will be capped at 50%.
A $300m allocation to Blackstone Property Partners open-ended core-plus fund was the largest new commitment made by CalSTRS.
Blackstone is looking to raise around $1bn for the vehicle.
CalSTRS said Blackstone has had a top quartile investment track record over multiple investment cycles since the early 1990s.
CalSTRS also committed $150m to the Beacon Capital Partners VII fund, for which the manager is looking to raise $1.25bn. The fund is focused on value-add offices.
The pension fund also committed $200m to its LCOR Project Platform joint venture with GI Partners, which invests in US apartments and mixed-use projects on the East Coast.