CalPERS is getting out of the winery development business, according to spokesman Wayne Davis.
“Premier Pacific Vineyard is our current manager, but we are in discussions to wind down the partnership,” he wrote in an e-mailed response to questions. “There is no announcement to make on a new manager. This change is part of the ongoing restructuring of our real estate portfolio that our investment staff has been engaged in for a few years now.”
Mr. Davis wrote that PPV was notified on Sept. 30 about the decision by the California Public Employees' Retirement System, Sacramento, but he wouldn't elaborate.
PPV was hired by the $217.1 billion system in January 2002 and given the assignment of developing vineyards in Washington state, Oregon and California.
CalPERS' last quarterly real estate statement on March 31 shows CalPERS had $68 million invested in Premier Pacific. Cumulative returns since inception through March 31 have been -8.20%.
Richard Wollmack, founder and managing partner at Premier Pacific, said he would have no comment.