CalSTRS commits to Lionstone, TriGate Capital strategies
The California State Teachers’ Retirement System (CalSTRS) has added $625m to its non-core and opportunistic real estate portfolio.
The US pension fund has backed Lionstone Investments and TriGate Capital with $200m and $175m.
CalSTRS also invested $250m in a Boston office through LaSalle Investment Management.
Bentall Kennedy sold the 782,000 sqft asset, which has a current occupancy of approximately 80%.
CalSTRS made a $75m commitment to TriGate’s opportunistic Property Partners III fund, with a further $100m for co-investment.
The investments are the pension fund’s first in TriGate Capital.
The fund, with a 15% net IRR target, will invest in US commercial real estate assets and companies with restructuring, recapitalising and repositioning opportunities.
The pension fund made a $200m commitment to Lionstone’s US Value Add Four fund, with $100m going directly into the fund and the same amount set aside for co-investments.
CalSTRS’s ownership in the fund will be 20%.
Lionstone is looking to raise $500m, targeting the office sector and mixed-use assets.
The fund will invest in US markets driven by the technology, entertainment, energy and/or medical centres, with limited real estate supply.