Chicago Public School Teachers’ Pension and Retirement Fund could invest $125 million in real estate later this year, said Kevin Huber, executive director of the $12.7 billion fund. This fall, the fund’s board and Townsend Group, its real estate consultant, will discuss how to invest the money; the board would likely consider existing manager relationships before looking at new managers, Mr. Huber said. The board raised its real estate target to 9% of total assets from 7%, although it currently has about 8% invested in real estate. Funding could come from equity index funds.
The board will also consider scrapping its policy limiting international real estate to 25% of the $1.05 billion property portfolio. The move would allow the fund to take advantage of more opportunities in the international market, which is growing faster than the U.S. property market, Rob Kochis, principal at Townsend, told the board. Townsend recommended removing the ceiling.
Chicago Teachers has 15% of its private real estate portfolio and 20% of its public REITs in international, Mr. Huber said.
