In the second half of 2017, the $224.4 billion California State Teachers’ Retirement System closed roughly $4.4 billion of commitments to new and existing real estate partners, according to the pension fund’s Investment Committee Semi-Annual Activity Report.
The majority of the commitments ($2.8 billion) were in high-control and liquid strategies such as joint ventures and open-end funds. Roughly $925 million was in closed-end commingled fund structures. Another $650 million was put into low-volatility debt strategies that provide high current cash flows and compelling total returns.
The majority of the commitments to real estate funds include the following:
| Fund name |
Fund manager |
Amount committed (m) |
Strategy |
| CP Logistics UK (Separate Account) |
Principal Real Estate Investors |
$704 |
Core |
| Blackstone Property Partners Europe |
Blackstone |
$400 |
Value-add |
| Beacon Capital Strategic Partners VIII |
Beacon Capital Partners |
$300 |
Value-add |
| Partners Group Golden Coast (Co-investment) |
Partners Group |
$200 |
Opportunistic |
| Partners Group Real Estate Secondary 2017 |
Partners Group |
$100 |
Opportunistic |
| AEW Value Investors Asia III |
AEW Capital Management |
$100 |
Value-add |
| AEW Value Investors Asia III Coinvest |
AEW Capital Management |
$100 |
Value-add |
| LaSalle Asia Opportunity Fund V |
LaSalle Investment Management |
$100 |
Opportunistic |
| Meyer Bergman European Retail Partners III |
Meyer Bergman |
$154 |
Value-add |
| CrossHarbor Strategic Debt Fund |
CrossHarbor Capital Partners |
$100 |
Value-add |
| CrossHarbor Strategic Debt Fund (Co-investment) |
CrossHarbor Capital Partners |
$21 |
Opportunistic |
| J Cal (Joint Venture) |
J.P. Morgan Asset Management |
$500 |
Core |
| LDP Cal I (Joint Venture) |
BlackRock |
$200 |
Opportunistic |
| CSHV Santa Clara Ph3 (Separate Account) |
CBRE |
$157 |
Core |
| Artemis Real Estate Partners Healthcare Fund I |
Artemis Real Estate Partners |
$100 |
Value-add |
CalSTRS also committed $495 million in real estate debt through a joint venture with PCCP, PacificCal Debt II, and $300 million to Beacon Capital Strategic Partners’ VIII fund.
In addition, the pension fund’s current real estate allocations as of Dec. 31, 2017, include: Core ($16.798 billion/62 percent); Opportunistic ($5.345 billion/22 percent); Value-Add ($4.503 billion/16 percent); Total – Real Estate ($26.646 billion) Total – CalSTRS ($215.318 billion); Real Estate percent of Total (11.83 percent).
CalSTRS has a target allocation to real estate of 12 percent.
