California State Teachers鈥� Retirement System (CalSTRS) has created a new joint venture with PCCP to invest in value-add real estate.
CalSTRS will own 98% of PacificCal VI, according to a document received from the pension fund, by providing $147m (鈧�125m) of equity. PCCP will co-invest $3m.
The two parties have invested more than $2.2bn through a series of joint ventures since 2005, always pursuing value-added strategies.
The joint venture will focus on properties that are located in underserved secondary markets and, to a lesser extent, primary markets in the US, CalSTRS confirmed to 91传媒在线.
The pension fund said: 鈥淲e believe we can find attractive opportunities in secondary markets where more deals trade and more market inefficiencies can be identified.鈥�
CalSTRS and PCCP will buy mostly existing retail, apartment, office and industrial assets, although it can invest in developments.
The existing properties will be improved through releasing, repositioning and redevelopment.
Leverage of 65% will be used and CalSTRS said it is targeting gross returns of at least a 12%.
