GI Partners, RREEF to take over CalPERS logistics
GLOBAL - GI Partners and RREEF are to take over the management of The California Public Employees' Retirement System's (CalPERS) $2.5bn (€1.9bn) global industrial real estate portfolio from incumbent manager LaSalle Investment Management.
CalPERS is making the move as part of a wider restructuring strategy to transfer assets to managers that outperformed peers managing CalPERS investments during the recent real estate market downturn.
GI Partners will take over the North American assets of the CalEast Global Logistics portfolio, valued at approximately $1.9bn, while RREEF will assume management of the European assets, valued at $60bn.
GI Partners was established in 2001 and specialises in real estate and private equity investments in North America and Europe, focusing on "control-oriented investments in asset-backed businesses and properties" in both regions.
CalPERS already has $700m of investments in three of the company's funds, including GI Partners II and GI Partners III.
Ted Eliopoulos, senior investment officer for real estate at CalPERS, said: "We have confidence in GI Partners and expect excellent performance from the CalEast portfolio going forward, given their strong returns since they joined our real estate programme in 2001."
RREEF, the real estate investment management business of Deutsche Bank's Asset Management division, has managed a separate industrial portfolio for CalPERS, called CalWest Industrial Properties, since 1998.
"RREEF's success with CalWest and their global breadth and expertise will be valuable in managing CalEast's European assets," Eliopoulos said.
Latest figures show CalPERS, the largest public pension fund in the US, has approximately $216bn in assets, of which $15.3bn is allocated to global real estate.
The pension fund has a long-term plan to increase its real estate allocation from its current level of 7.1% to 10%.