California State Teachers' Retirement System, Sacramento, approved an RFP on Wednesday for up to 12 managers for a $2.1 billion real estate allocation.
Trustees for the $88 billion fund for the first time will allow new real estate managers investment discretion of up to $100 million per transaction. In addition, staff will make the final selection of managers.
Staff also will establish a pool of replacement real estate managers in the event a manager is terminated.
The RFP is expected to be issued in October. Responses are due at the end of December.
Finalist interviews will be conducted in February, with a decision shortly thereafter. CalSTRS' five incumbent managers are expected to compete.
The fund's target real estate allocation is 5% of assets.
The current allocation is 2.1%.