The California State Teachers’ Retirement System (CalSTRS) and Korean Teachers’ Credit Union (KTCU), a public pension fund based in South Korea, have launched a joint venture targeting logistics centres in the United States.

According to The Korea Economic Daily, the joint venture launched with 612.2 billion won (US$505.2 million) of capital, and it represents the first time the pension funds have closed a partnership.

“We’ll use the JV as a basis for boosting our global partnerships with some large pension funds,” said Kim Sang-Gon, CEO of KTCU. “Then, we’ll intensify strategic partnerships with them for the long term.”

CalSTRS is the second global pension fund that KTCU has established such a partnership with. CalSTRS also has an ongoing partnership with South Korea’s Public Officials Benefit Association (POBA) pension fund. CalSTRS and POBA formed a US$600 million US commercial real estate joint venture in April 2021.