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CalPERS changes management of $724 million in real estate

January 3, 2011 |  1:13 pm

The California Public Employees' Retirement System on Monday announced that it had changed managers for $724 million in commercial real estate.

Privately held CommonWealth Partners of Los Angeles replaced Hines of Chicago as manager of CalPERS' National Office portfolio of 5.2 million square feet of Class A properties in major U.S. markets, including San Francisco; Palo Alto, Calif.; Boston; Chicago; Seattle; Minneapolis; Salt Lake City; Austin, Texas; and Denver.

CalPERS said the transfer is part of an ongoing general realignment of its real estate holdings since suffering steep losses during the recession of 2008-09.

"CommonWealth Partners has done extremely well for us for over 12 years now, and we anticipate very good performance from them and the domestic office portfolio," said Ted Eliopoulous, the senior investment officer in charge of the pension fund's $15 billion in global real estate.

CommonWealth has executed more than $4 billion worth of transactions in other CalPERS partnerships since 1998, the fund said.

Last month, CalPERS moved $1.9 billion worth of North American industry property  to GI Partners and $60 million in European holdings to Deustsch Bank's RREEF management subsidiary.

The $222-billion CalPERS is the country's largest public pension fund. It administers retirement benefits for 1.6 million state and local employees, retirees and their families.

-- Marc Lifsher