California Public Employees' Retirement System, Sacramento, is expected to issue an RFP for money manager assignments in retail real estate, excluding shopping malls, in mid-February.
A second RFP, for mall real estate managers, is expected to be issued in mid-March. The $128 billion fund now has $294 million invested in malls and $248 million in other kinds of retail properties.
Retail managers for the fund are LaSalle Advisors; ERE Yarmouth; Building Investment Trust; General Electric Capital; AMB; RREEF; Westmark; and EQK Compass. Retail assignments are not now divided by mall and non-mall categories. No dates were available on when the RFP responses would be required.
The fund also is considering making its first real estate investments outside North America. A report from CalPERS' real estate consultant Pension Consulting Alliance/E&Y Kenneth Leventhal suggests international real estate could provide superior risk-adjusted returns. Staff will study the matter further.
Pricoa Capital Group has formed Argus Capital Group in London to invest in emerging European markets. The unit plans to invest up to $200 million in Eastern and Central European private equities, but a spokesman declined to comment on whether it would seek to raise outside funds.
Ali Artunkal, who formerly invested in private equities for Chase Manhattan Bank, is managing director of Argus.