Sacramento County Employees’ Retirement System (SCERS) has sold most of its real estate separate accounts assets as planned and reinvested the capital into open-ended core US property funds managed by Clarion Partners and Brookfield Asset Management.
Last year, IPE Real Assets reported that SCERS was planning to sell its remaining separate account real estate assets in exchange for a stake in a core, diversified fund.
The $9.2bn (€8.02bn) pension fund said in a meeting document that it sold five of its six remaining separate account assets to Clarion for $252.15m and will be putting $152.15m into the Clarion Lion Properties Fund and $100m into Brookfield Premier Real Estate Partners.
The pension fund backed its decision by saying Clarion and Brookfield offered an ideal balance between risk and return, with the potential for outperformance across market cycles.
SCERS said the sale of the sixth separate account asset is expected to be finalised at the end of this month. The asset is the Leland James Center, an office redevelopment project in Portland managed by BlackRock.