CalPERs to sell much of its investment portfolio

The California Public Employees Retirement System announced Tuesday that it plans to sell up to $3 billion of its real estate investment holdings.

The pension fund – better known as CalPERS – has hired Park Hill Group, a global asset management firm, to help with the deal, according to a statement released
Tuesday.

CalPERS’ total real estate portfolio is worth approximately $25.5 billion and is made up of commercial, residential and industrial assets. What will be offered up for sale “no longer align(s) with the strategic goals of the real estate program,” according to the statement.

“The sale of these assets represents the continued effort to reduce costs, risk and complexity across the CalPERS fund,” said Paul Mouchakkaa CalPERS’ Senior Investment Officer for Real Assets, in the statement. “For the real estate program, it will enable us to invest in assets and managers that are more aligned with our current strategy.”

CalPERS is the retirement system for state, school and public agency employs. It serves more than 1.7 million members, according to the statement.