CalPERS plans to issue an RFP by June 30 for a pool of real estate appraisers. CB Richard Ellis and Cushman & Wakefield have been appraising the $152 billion California Public Employees’ Retirement System’s real estate holdings since 1996, but the portfolio has more than tripled in value to $13 billion since then. In addition, CalPERS’ real estate consultant, PCA/EY&KL, suggested the fund rotate appraisers on a three- to five-year basis.
Separately, CalPERS named State Street Global Advisors and Barclays Global Investors as the top contenders to run its $18.4 billion passive international equity portfolio, according to an analysis by staff. SSgA has been managing CalPERS’ passive portfolio since 1989. A recommendation will be made at the system’s March 18 investment committee meeting.
CalPERS staff also proposed up to $100 million in commitments to Bridge Housing to finance construction of low-income and affordable housing in California. For each loan, either Wells Fargo Bank or Bank of America would have a 50.5% interest, CalPERS 39.5%, and World Savings and Loan Association the remaining 10%. CalPERS would receive a minimum return of the prime rate, which currently is 2.8 percentage points higher than one-month LIBOR rate. CalPERS would provide initial funding of $25 million, while giving staff authority to funnel an additional $75 million to the project.
