The California Public Employees鈥� Retirement System (CalPERS) has approved more than $4bn (鈧�3.6bn) in new commitments to real estate.
It made a $1bn allocation to the US office-focused Fifth Street Properties partnership, managed by CommonWealth Partners, according to a board-meeting document.
The partnership only invests in US office buildings and mainly in core assets.
CommonWealth Partners鈥� current portfolio is in New York City, Los Angeles, the San Francisco Bay Area, San Diego and Washington DC.
Fifth Street Partners鈥� portfolio was valued at $1.6bn in March.
CalPERS also allocated $500m to ARA Management鈥檚 China Investment Partners, a rarity as the pension fund is looking to invest up to 75% of its real estate portfolio in core US assets.
It made a new $400m commitment to 鈥檚 Institutional Logistics Partners (ILP), doubling the current value of the existing portfolio.
Steve Lekki, senior vice-president and portfolio manager for Bentall Kennedy, said: 鈥淥ver the past three years, we have been successful executing on our base core strategy for ILP to acquire best-in-class, high-quality assets in a number of our target markets.鈥�
These have included deals in Southern California, the San Francisco Bay Area and Northern New Jersey.
