CalPERS puts $1 billion in Asian real estate

CalPERS will funnel $1 billion into the ARA Asia Dragon Fund, which will focus on office, retail and residential properties in China, Singapore, Hong Kong and Malaysia, confirmed CalPERS spokesman Clark McKinley. Half of the commitment from the $246.6 billion California Public Employees’ Retirement System will go into public REITs, and the other half will be earmarked for potential co-investment in private real estate opportunities. The Asia Dragon Fund will target annualized net returns of 18%. Sacramento-based CalPERS invests $3 billion of its $34 billion real estate portfolio in Asia.