Chicago Public School Teachers' Pension & Retirement Fund decided not to move forward with a potential investment in a local real estate development from manager Manulife Investment Management and real estate firm Sterling Bay.
The $11.7 billion pension fund's board at its Aug. 17 meeting voted not to move forward with hiring a consultant to conduct additional due diligence on a potential investment in the troubled Lincoln Yards megadevelopment on the north side of Chicago, according to an Aug. 18 news release from the pension fund.
Sterling Bay had been trying to strike a deal with the pension fund to bail out Lincoln Yards, an ambitious $6 billion project that has been stalled amid a financial storm that threatens Sterling Bay's control over major pieces of its high-profile local portfolio.
Sterling Bay, along with Manulife Investment Management, had made a presentation at the pension fund's May 23 investment committee meeting. At its June 15 meeting, the full board assigned its investment consultant, Callan, to conduct further research into the potential investment.
After Callan's presentation on Aug. 17, the board voted to decline any further movement on the investment. Pension fund spokeswoman Michelle Holleman said in an email that the presentation was made in closed session and its contents remain confidential.
"As fiduciaries, CTPF believes in thoroughly evaluating all potential investment opportunities to ensure they align with the Fund's strategic goals and principles," said Fernando Vinzons, the pension fund's chief investment officer, in the news release. "CTPF maintains a rigorous process that ultimately allows the Board to make informed decisions, and we saw that play out with this opportunity."