CalPERS is selling off its $1.1 billion timberland portfolio, one of the largest and oldest institutional investments in the specialized asset class.
Observers believe the $136 billion California Public Employees Retirement System, Sacramento, will split the portfolio into parts to be sold to other institutional investors. Sources suggested that the C$68 billion (US$43 billion) Ontario Teachers Pension Plan, Toronto, or the $17.5 billion Harvard University endowment fund, Boston, could be potential buyers. A spokeswoman for Ontario Teachers said fund officials are looking at timber, but they declined to comment further. Jack Meyer, president and CEO of Harvard Management Co., was unavailable for comment.
Hancock Timber Resource Group manages about two-thirds of the CalPERS assets, while Campbell Group manages the remainder. Officials at CalPERS, Hancock and Campbell declined to comment.
CalPERS is also disposing of a $139 million triple net lease portfolio managed by CNL Institutional Advisors. Officials at CalPERS and CNL declined to comment.