CalSTRS closes $4.1b in real estate commitments in H1 2018
In the first half of 2018, the $228 billion California State Teachers Retirement System has closed roughly $4.1 billion of commitments to new and existing partners, according to its real estate semi-annual report.
The majority of the commitments ($2.8 billion) were in high-control and liquid strategies such as joint ventures, separate accounts and open-end funds, where CalSTRS can deploy capital as needed and/or control the return of capital. Roughly $1.2 billion was in closed-end commingled fund structures. Another $750 million was put into low-volatility debt strategies that provide high current cash flows and compelling total returns.
CalSTRS current asset classes are as follows:
- Core – $18.2 billion
- Value-add – $5.1 billion
- Opportunistic – $3.68 billion
- Legacy – $1.758 billion
CalSTRS’ most recent commitments during the first half of 2018 include $200 million to a newly formed 3650 REIT/CalSTRS joint venture fund; $300 million to a newly formed joint venture with DivcoWest; and $400 million to Blackstone Property Partners Europe.
In the second half of 2017, CalSTRS reported that it closed roughly $4.4 billion of commitments to new and existing real estate partners.
As of July 31, 2018, CalSTRS has a target allocation to real estate of 12 percent and an actual allocation of 12.72 percent. Its real estate asset class accounts for $29 billion of its total investment portfolio.
