CalPERS to Invest $200 Million in Real Estate

The California Public Employees’ Retirement System, the largest public pension fund in the United States, said it will invest $275 million in California real estate and the state’s computer-related industry. The $157-billion pension fund will invest $200 million in two real estate ventures. Half will go to CommonWealth Partners, which invests in urban Southern California properties. The other $100 million will go to California Community Initiatives Fund, which lends money for office buildings, retail property and housing in inner cities. The fund will also invest $75 million in Silver Lake Partners, which invests in California companies that make computer hardware and software. Historically, CalPERS’ California real estate investments have produced average returns of 17.6%, compared with a 10.6% return for out-of-state investments.