Largest public pension fund buys $100M stake in Bentall Kennedy

Calpers calls investment in national real estate firm, a 'new strategic move'

TRD New York /
Jun.June 27, 2012 12:30 PM

One month following Calstrs’ purchase of a 90 percent stake of LCOR for $820 million, the nation’s largest public pension fund has nabbed one-third of Bentall Kennedy, a national real estate and development firm, for roughly $100 million, CoStar Group reported. The group is the California Public Employees’ Retirement System, also known as Calpers, which calls the acquisition a “new strategic move.”

Unnamed sources told CoStar that this new trend of taking part ownership of real estate firms shows a bid to gain an advantage against competitors for assets that carry lower risks and provide steady returns. In addition, the sources said, this is a way for investors to benefit from potentially higher returns from future development of real estate assets.

Calpers has invested over $18 billion in global real estate, CoStar said, which equates to 8 percent of the fund’s $228 billion investment portfolio.

The Bentall Kennedy purchase represents a reversal for Calpers, which had been shifting its strategy away from real estate investment after taking hits on boom-era housing deals, including losing a $500 million stake in Stuyvesant Town and Peter Cooper Village. [CoStar]


Related Articles

arrow_forward_ios
25 Broad Street and renderings of interior units from Booking.com (Credit: Google Maps and Booking)

LCOR lands rental deal with Booking.com for empty condos

LCOR lands rental deal with Booking.com for empty condos
LCOR’s Anthony Tortora and the parking lot at 1517 Surf Avenue (Credit: Google Maps and LCOR)

California teachers get in on Coney Island’s redevelopment

California teachers get in on Coney Island’s redevelopment
The fire brigade, police and rescue services are on duty near the scene of the accident. At least one person died in a helicopter crash on a skyscraper in New York's Manhattan district (Photo by Benno Schwinghammer/picture alliance via Getty Images)

One dead in helicopter crash at
787 Seventh

One dead in helicopter crash at
787 Seventh
Public pension funds looking for more exposure to high-risk real estate

Public pension funds looking for more exposure to high-risk real estate

Public pension funds looking for more exposure to high-risk real estate
This pension fund is providing L&L with equity for its Terminal Stores buy

This pension fund is providing L&L with equity for its Terminal Stores buy

This pension fund is providing L&L with equity for its Terminal Stores buy
LCOR eyes $400M sellout for condo conversion of 25 Broad

LCOR eyes $400M sellout for condo conversion of 25 Broad

LCOR eyes $400M sellout for condo conversion of 25 Broad
Brookfield partners with CalPERS and CBRE on GGP acquisition

Brookfield partners with CalPERS and CBRE on GGP acquisition

Brookfield partners with CalPERS and CBRE on GGP acquisition
LCOR testing market for 308-unit condo conversion at 25 Broad Street

LCOR testing market for 308-unit condo conversion at 25 Broad Street

LCOR testing market for 308-unit condo conversion at 25 Broad Street
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...