GLOBAL - The University of California Retirement Plan and General Endowment Plan are planning to make a $300m (€238m) investment in REITs.

Approximately 90% of the funding will come from the Retirement Plan, while the Endowment Plan will contribute 10%.

According to industry sources, both plans are looking to employ the capital in core investments. 

What's more, they are understood to have decided against investing the capital through the private real estate sector, as it would take too long.

The two top-performing core, open-ended commingled funds, for example, have a queue to get into their funds at more than $1bn each - JP Morgan Asset Management has queue to enter into its Strategic Property fund at $1.6bn, while UBS Realty Investors has a queue to go into its Trumbull Property fund at more than $1bn.

The managers of these funds will therefore be unlikely to call down any commitments to these commingled funds before the end of this year or the first quarter of 2011.

State Street, which already manages an existing REIT portfolio for the university, is set to manage the REIT capital, which will be invested in a mixture of domestic and global strategies.


 

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