The California Public Employees’ Retirement System (CalPERS) plans to sell $3bn (£1.9bn) of property assets.
The US pension fund has appointed Park Hill Group to sell a portfolio of holdings in property funds invested in Europe, Asia, India and the US as part of a wider cost- and risk-reduction programme.
The portfolio comprises both domestic and international funds, and holds assets that no longer align with the strategic goals of the real estate programme.
CalPERS said the total amount for sale could vary based on market conditions and what the real estate market could absorb.
CalPERS’ total fund market value currently stands at around $300bn, with about $25.5bn in commercial, industrial and residential property assets.
It said that the sale would not include any residential properties, and that the properties offered could be sold separately or as a portfolio.
Park Hill Group will immediately begin seeking offers from interested parties on the secondary market, and plan to have a deal completed by the end of 2015.
Paul Mouchakkaa, CalPERS senior investment officer for real estate assets, said: “The sale of these assets represents the continued effort to reduce costs, risk and complexity across the CalPERS fund. For the real estate programme it will enable us to invest in assets and managers that are more aligned with our current strategy.”
