CalPERS moves industrial real estate portfolio

CalPERS shifted its $1.9 billion CalEast North America Global Logistics industrial real estate portfolio to GI Partners after terminating previous manager LaSalle Investment Management, according to a news release.

In a separate action, CalPERS reassigned CalEast's $60 million in European assets to RREEF, the real estate investment management business of Deutsche Bank's asset management division.

Clark McKinley and Brad Pacheco, spokesmen for the $216.9 billion California Public Employees' Retirement System, Sacramento, did not return phone calls seeking more information.

CalPERS has been terminating underperforming real estate managers following massive losses in its portfolio over the past few years. The news release said the system changed managers as part of a restructuring effort to shift assets to managers running system investments that outperformed peers during the real estate market downturn.

Stefanie Murphy, LaSalle global corporate communications manager, said the company does not comment on client relationships.

Ted Eliopoulos, CalPERS senior investment officer, real estate, said in the release that the system has more than $700 million total with three GI Partners funds.

“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 program in 2001,” he said in the release.

GI Partners stated in a separate news release that CalPERS has realized annualized returns of 30% with its GI investments since its original investment in 2001.