The California Public Employees' Retirement System--the giant state employee pension fund--said Monday that it has teamed up with San Diego-based Burnham Pacific Properties Inc. to manage and develop $500 million worth of retail property.
CalPERS, as the pension fund is known, will put $250 million in existing shopping center properties and $150 million in capital into the venture, which will focus on retail centers in the western U.S.
Burnham Pacific, a real estate investment trust, will contribute $100 million in capital and manage the portfolio. The deal is expected to become final June 30.
The CalPERS-Burnham venture will include smaller, community shopping centers and power centers anchored by such retailers at Home Depot and Target.
"We at CalPERS believe that Burnham Pacific is well-positioned to execute our non-mall retail strategy in the Western United States," David Gilbert, senior investment officer for real estate at CalPERS, said in a statement. "Burnham's well-established experience should position CalPERS to capitalize on prime retail investment opportunities."
The pension fund's real estate portfolio is currently valued at $3.9 billion.
Burnham Pacific owns and manages 64 retail properties in California, Oregon and Washington.