The largest pension fund in the US, the California Public Employees’ Retirement System (Calpers), has announced plans to sell up to $3 bn (€2.7 bn) of its real estate assets to reduce costs and risks.
The largest pension fund in the US, the California Public Employees’ Retirement System (Calpers), has announced plans to sell up to $3 bn (€2.7 bn) of its real estate assets to reduce costs and risks.
Calpers, which holds a total of $25.5 bn in commercial property assets, has instructed Park Hill Group to find a buyer, with the aim of completing a deal by the end of 2015.
Details of the portfolio were not revealed, but the company said it was a mixture of domestic and international assets ‘that no longer align with the strategic goals of the real estate programme’.
Senior investment officer Paul Mouchakkaa said: ‘The sale of these assets represents the continued effort to reduce costs, risk and complexity across the Calpers fund.’
Calpers is also looking to reduce the number of external investment managers in its total fund by half to around 100.
