Investors

Just five years after launching it, Citi is following the lead of other institutions and trying to exit its private equity real estate funds business. CPI must first win approval from 67% of its LPs.

The California Public Employees’ Retirement System and a JV partner have purchased a majority stake in a portfolio of shopping centers it sold four years ago. The deal indicates CalPERS propensity for core income yielding property.

The McLean, Virginia-based firm is immediately closing its Latin America fund and operations.

The Pension Benefit Guarantee Corporation (PBGC) has revoked lucrative private equity and real estate advisory contracts with BlackRock, Goldman Sachs and JPMorgan after concluding that the former head of the federal corporation may have acted inappropriately before and during the bidding process.

Trilyn managing director Mark Antoncic has warned limited partners to band together and be assertive when trying to preserve their investments. In some cases, this could involve replacing the GP.

Paris-based insurer Axa says its real estate investment management business has struck an agreement with Chinese insurer, Ping An, to co-invest in residential projects in the country. A China real estate fund is also on the way.

The two powerful California pension funds have announced huge write-downs in private equity and real estate over the fiscal year ending in March. Both funds have implemented measures to counter the losses, including moving allocations and negotiating for lower fees.

The $119bn pension’s new ‘absolute return’ asset class will include infrastructure investments and could lead to a search for a manager to run the investment programme. The move is part of a wider asset allocation shift to be unveiled at its August meeting after CalSTRS saw its portfolio value tumble 25 percent over the last year.

Even though investments into Asian, non-listed real estate funds have dipped markedly in the short-term, allocations to the sector will increase over the next three to five years.

The flow of private real estate firms launching public debt REITs has increased again, after the New York-based firm filed an IPO for Ladder Capital Realty Finance. The vehicle will primarily originate first mortgages and target some CMBS, B-notes and mezzanine loans.