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.
