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Reuters – CalPERS Invests $530M In China Real Estate

The California Public Employees’ Retirement System will invest $530 million in two new real estate funds of ARA Asset Management that will mainly allocate to China, the biggest U.S. public pension fund said on Thursday, according to Reuters. CalPERS will allocate $480 million to the ARA Long Term Hold Fund. The fund will invest in office buildings and malls in China and Hong Kong. The fund will also invest $50 million in ARA’s Dragon Fund II that will primarily focus on retail, office and residential properties in China, Singapore, Hong Kong, and Malaysia, it said in a statement.

 

(Reuters) – The California Public Employees’ Retirement System will invest $530 million in two new real estate funds of ARA Asset Management that will mainly allocate to China, the biggest U.S. public pension fund said on Thursday.

 

CalPERS, which has assets worth about $238 billion, will allocate $480 million to the ARA Long Term Hold Fund. The fund will invest in office buildings and malls in China and Hong Kong.

 

The U.S. pension fund will also invest $50 million in ARA’s Dragon Fund II that will primarily focus on retail, office and residential properties in China, Singapore, Hong Kong, and Malaysia, it said in a statement.

 

CalPERS previously invested $500 million in ARA’s Dragon Fund I in 2007. The investment earned it a 19.2 percent return in one year ending March 31, 2012, and an annualised 8.4 percent gain in three years through end of March, it said.

 

ARA, which managed S$21.8 billion ($17.44 billion) at end-June, is part-owned by Cheung Kong Holdings, controlled by Asia’s richest man, Li Ka-shing.