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Calpers considers investment in internation real estate

AlfredSokol said: "Calpers is looking to make bigger returns. They were advised by consultants to put a big chunk of money into [url=http://www.financialnews-us.com/?page=ushome&contentid=2348566410]international real esate in the next 10 years[/url]. [quote] Calpers, which has $245bn (€183bn) in assets under management, reviewed its real estate assets for the first time in more than 10 years this month. PCA Real Estate Advisors recommended to Calpers' board to increase its real estate investment to 10% from its current 8% level, with foreign property assets eventually comprising 50% of the total. If approved by the board next spring, the changes would be phased in over the next five to 10 years. Foreign investment should be relatively more attractive than the US, since emerging markets, especially in China, India and Latin America would grow at a faster rate, according to the consultants. If Calpers shifted its real estate portfolio as suggested, it could increase its current equity stake from $20bn to $36bn. With leverage, equity could be as much as $75bn, according to the consultants’ projections.[/quote] Anything Calpers does is bound to attract attention simply because of the massive size of the fund."

FirefighterB said: "I've always been interested in international investment, however, I know many countries have tough laws to keep out foreign investors. But, it sounds like this fund might be a decent way to get involved. I think the growth in foreign RE markets could be pretty good as the world economies continue to grow. Especially if prices stay high (although it looks like the might not) in the US and if the dollar strengthens (although, again, maybe not gonna happen), investments might head that way."