Evelyn Lee
The second largest US pension plan said returns for real estate during fiscal year 2011-2012 fell short of an industry benchmark and were down from a 17.5 percent return the previous year.
Real estate scored the highest gains among the asset classes in the $233 billion pension plan’s investment portfolio, earning a nearly 16 percent return and exceeding its benchmark by 322 basis points.
The $39.2 billion pension plan has agreed to grant staff the authority to redistribute up to $200 million in new real estate allocations for the fiscal year 2012-2013.
The $37 billion pension plan is expanding its co-investment activity into real estate and is seeking a consultant to assist with the new initiative.
The Sunshine State has made its second real estate commitment of 2012 to the Boston-based private equity real estate firm’s current opportunistic fund – part of a larger push to invest up to $1 billion in real estate over the next three years.
The New York-based developer and fund manager is said to be using a placement agent for the first time to help raise capital for its US real estate fund.
Real estate managers continue to account for the largest share of global alternative investments, according to a new survey from Towers Watson.
The lead investors in the Boston- and Greenwich, Connecticut-based private equity real estate firm’s first commingled fund helped to steer additional capital to the vehicle, which became oversubscribed less than a year after its official launch.
CalPERS’s purchase of a major stake in real estate investment advisor Bentall Kennedy will provide the largest pension fund in the US with an inside knowledge of the investment management business.
The $19.5 billion pension fund has decided to pull its $100 million commitment to H/2 Capital’s core debt fund after the two parties failed to reach an agreement on contract terms.