California State Teachers' Retirement System, Sacramento, approved a staff recommendation to extend the contracts of its real estate advisers through Dec. 31, 1997. The $62.5 billion fund's contracts with AMB, Equitable, O'Connor and Westmark were to expire Dec. 31, 1996; contracts with Metric and MIG were to expire June 30, 1997.
Still, the board wants its staff to continue to renegotiate lower real estate management fees. And, the board, at staff's recommendation, said if a CalSTRS real estate manager's fees aren't in line with other realty managers' fees, the manager could be dropped.
The fund still is studying ways to make its real estate portfolio more liquid, probably through securitization, so that it could tactically change its real estate allocation.