Contra Costa County ERA proposes $241 million investment in private real estate

The $5.95 billion Contra Costa County (Calif.) Employees Retirement Association (CCCERA) board has proposed an additional allocation of $241 million to invest in closed-end real estate funds, according to documents from a May 8 meeting.

The $241 million will be drawn from CCCERA’s allocation to REITs, which is currently near its target allocation of 3.5 percent of the total real estate portfolio. The CCCERA recommendation states REITs and core real estate offer reasonable, but not attractive, investment returns. The investment in private real estate funds is to maintain the pension fund’s target exposure to real estate.

CCCERA aims to invest $60 million in value-added strategies, $25 million in opportunistic strategies and $155 million in distressed strategies. Currently, CCCERA’s private real est