California State Teachers鈥� Retirement System (CalSTRS) has gained a controlling stake in a US residential platform from .
The $229bn pension fund said it has acquired a majority interest in Fairfield Residential Company for an undisclosed sum.
Fairfield was majority-owned by Brookfield and minority-owned by CalSTRS.
CalSTRS said following the latest transaction, retained its interest in the investment manager of Fairfield鈥檚 affiliated real estate funds.
Recently CalSTRS adopted what it called a 鈥淐ollaborative Model鈥� for investments across all asset classes in its portfolio.
The CalSTRS Collaborative Model creates long-term relationships between CalSTRS and other long-term investors to create efficient investment vehicles that produce attractive sources of return by effectively using the strengths of each investor.
CalSTRS said this transaction [Fairfield] was possible because of the flexibility built into CalSTRS Collaborative Model.
CalSTRS director of real estate Mike DiR茅, said: 鈥淭he result is our ability to align the real estate portfolio with a top-tier manager and long-time CalSTRS real estate partner.
鈥淭ransitioning to majority owner was appealing for a number of reasons, including the expansion of Fairfield鈥檚 geographic footprint and the growth of its capital base to include other like-minded investors.鈥�
CalSTRS has been a partner of Fairfield鈥檚 since 1997 and a minority owner since 2005. Currently, the pension fund has over $2bn committed with the company in develop-to-core, value-add, and affordable housing strategies.
Associate portfolio manager Josh Kawaii-Bogue, said: 鈥淎s a majority owner, CalSTRS will be able to create better investment cost efficiencies and enhance its investment execution efforts in the coming years.鈥�
Deputy CIO Officer Scott Chan, said: 鈥淐alSTRS will continue to partner with best in class managers and operators as it seeks to create better alignment and reduce costs across its real estate portfolio.鈥�
Fairfield CEO Greg Pinkalla, said: 鈥淔airfield looks forward to building on our 20-year relationship with CalSTRS as we continue to originate and execute varied investment strategies in the multifamily space.鈥�
