California State Teachers’ Retirement System (CalSTRS) has gained a controlling stake in a US residential platform from Brookfield Asset Management.

CalSTRS has acquired a majority interest in Fairfield Residential Company for an undisclosed sum. Fairfield was majority owned by Brookfield and minority owned by CalSTRS. The $227.8bn pension fund said following the latest transaction, Brookfield retained its interest in the investment manager of Fairfield’s affiliated real estate funds,

CalSTRS adopted what it called a “Collaborative Model” 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.

The pension fund said this transaction was possible because of the flexibility built into CalSTRS Collaborative Model.

Mike Dire, CalSTRS director of real estate, said: “The result is our ability to align the real estate portfolio with a top-tier manager and long-time CalSTRS real estate partner.”

He added, “Transitioning to majority owner was appealing for a number of reasons, including the expansion of Fairfield’s geographic footprint and the growth of its capital base to include other like-minded investors.”

CalSTRS has been a partner of Fairfield’s 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.

Fairfield CEO Greg Pinkalla, said: “Fairfield 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.”

Source: IPE

Fulya Altunyay/[email protected]