CalSTRS closes roughly $4.4b of real estate commitments in H2 2017
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.