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CalSTRS Announces California Infrastructure Investments

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According to the press release, “The California State Teachers’ Retirement System (CalSTRS) today announced the expansion of its infrastructure program that includes a $42.8 million commitment to four California investments. Two of the investments are construction projects.

The California investments are:

  • The construction of a portion of the Presidio Parkway transportation project in San Francisco.
  • The reconstruction of the Long Beach courthouse in Los Angeles County.
  • The operation of the gas-fired Crockett power plant near Oakland.
  • The operation of the solar-electric Sun-Edison plant in the Sacramento area.

“These investments reflect CalSTRS’ commitment to the California economy and our willingness to contribute to it in a way that helps our state and offers the fund long-term, steady cash flows. The construction projects, in particular, will put more than 600 Californians to work,” said Chairman of the CalSTRS Investment Committee Harry Keiley. “We will continue to actively seek out greater investment opportunities in California infrastructure that meet our program objectives.”

The CalSTRS approach is to invest in long-term assets that hedge inflation and generate steady cash flows from high operating margins. CalSTRS is investing in funds initially, but eventually seeks to become involved more with co-investments and direct investments.

“California has a vibrant bond market that serves as an excellent vehicle for infrastructure investment,” Keiley added. “We’re looking for those opportunities that require capital beyond municipal bond debt. We believe they’re out there and we intend to invest in them to the benefit of our state and our members.”

The CalSTRS Investment Committee established the infrastructure portfolio in 2010. As of today, CalSTRS has committed $750 million to infrastructure assets. The most recent commitment is $100 million to the Meridiam Infrastructure North America Fund II, which closed in July 2012. In late 2011, CalSTRS partnered with Industry Funds Management on a two-part, $500 million global funds commitment. CalSTRS’ first infrastructure commitment was $150 million to the First Reserve Energy Infrastructure Fund in April 2011.”

Read more: CalSTRS Press Release

Blackstone Defeated on Investa Office Fund Bid

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The Blackstone Group threw in the towel on a bid to take over the Investa Office Fund, a vehicle that owns prized Australian office properties. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Temasek’s Bond Expected to Lure Retail Investors

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Singapore’s Temasek Holdings, through its subsidiary Temasek Financial (IV) Private Limited, is planning a 5-year bond that aims to yield 2.7% for retail investors. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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The Qatar Investment Authority (QIA) became the biggest shareholder of Inmobiliaria Colonial, SOCIMI, S.A. (Colonial), a Spanish listed real estate company. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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