US - The California Public Employees' Retirement System (CalPERS) has replaced BlackRock Realty Advisors as manager of a $1bn apartment real estate portfolio.
As part of the fund's restructuring plan, CalPERS has consolidated its entire core multifamily apartment portfolio under a single partner - GID Investment Advisers, an affiliate of the General Investment & Development Companies (GID).
GID, which has managed Windsor Realty Fund III for CalPERS since January 1998, also will now co-invest in and manage the Western Multifamily LLC.
BlackRock Realty Advisors had managed the Western Multifamily LLC for CalPERS since 1998. The new venture will consist of 57 apartment communities with 14,674 units in 13 states with a net asset value of approximately $1.1bn.
"GID has been an exceptional partner and manager over the years in a difficult market and will enter into an alignment of interest relationship by making a significant co-investment in the new venture," said Ted Eliopoulos, CalPERS senior investment officer, real estate.
"By consolidating our core multifamily portfolio under a single partner/manager, we anticipate lower costs, improved efficiency and enhanced performance as we reposition our real estate program for long-term growth."
GID is a privately-owned, vertically-integrated real estate operating company with over 50 years' experience in owning, developing and managing apartment communities, flex/industrial business parks and suburban office properties throughout the United States and India.
Following the consolidation, GID will have ownership interests in 93 apartment communities containing 25,002 units and, including its commercial properties, in 127 properties across the United States with an estimated value of $5.3bn.
Meanwhile CalPERS and CalSTRS are co-hosting this year's International Corporate Governance Network's (ICGN) summit, which runs from October 6 -7 in San Francisco.
Institutional investors representing almost US $10trn in assets under management will attend the event, which will look at the risks posed by governance and sustainability issue and mark the launch of the ICGN Corporate Risk Oversight Principles.
"California's two top public pension funds are delighted to host this important Mid-Year Conference, and to welcome investors to California and San Francisco, a strategic state and key city in our global economy," said CalPERS chief executive officer Anne Stausboll.
"The ICGN has made great strides in advancing the goals of this conference to bolster financial sustainability and restore market stability, corporate value and public trust. We look forward to using this time together to set a path forward in pursuing those goals."
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