The $191.4 billion California State Teachers' Retirement System, West Sacramento, committed $850 million to real estate funds and joint ventures and purchased an eight-story office building in London for $300 million, its first overseas direct real estate investment, said spokesman Ricardo Duran.
The building, known as London Wall, is a value-added office building in the heart of London, according to a CalSTRS report of real estate transactions that took place between April 1 and June 30. The report does not say when CalSTRS closed on the deal.
The building will be managed by LaSalle Investment Management. The 261,748-square-foot building was purchased from Deutsche Fonds Holding.
The report also lists five other new real estate partnerships for the retirement system totaling $850 million. The largest of the commitments is a $400 million joint venture investment with CP Logistics Platform, which will focus on build-to-core and lease-to-core investments in major industrial markets through the U.S. The joint venture will be 95% owned by CalSTRS.
CalSTRS also invested $200 million with ParkCal, a joint venture with J.P. Morgan Asset Management. The joint venture will invest in office buildings throughout the U.S. and is 97% owned by CalSTRS.
CalSTRS also committed $100 million each to PCCP Equity VII and PAG Real Estate Partners and $50 million to Heitman's Value Partners Fund III.