CalPERS and CalSTRS may commit an additional $200 million each to the CIM California Urban Real Estate Fund, which currently runs $180 million in assets, almost entirely from the two Sacramento, Calif.-based pension funds. CalPERS expects to earn a 29% net leveraged return from the fund.
On Monday, the investment committee of the $134 billion California Public Employees Retirement System voted to approve a staff recommendation that would increase CalPERS existing $125 million commitment to the CIM fund by up to $280 million, contingent on CalSTRS boosting its $45 million commitment by $100 million. Alternatively, if the $90 billion California State Teachers Retirement System decides against increasing its investment in the fund, CalPERS will commit up to $150 million in a new $800 million fund that CIM would launch.
But Michael McCook, CalPERS senior investment officer, real estate, said one option CalSTRS is considering would be investing up to an additional $200 million alongside CalPERS in the existing fund. The CalSTRS board discussed the item in closed session; CalSTRS spokeswoman Sherry Reser declined to comment on any action taken by its board.