CalPERS is selling a big real estate investment at a $250 million loss.
It's the latest in a series of moves as CalPERS restructures its real estate holdings in the aftermath of the housing market crash.
The pension fund said it's selling its share in 28 separate housing developments in 11 states to the U.S. subsidiary of Japanese homebuilder Sekisui Ltd. The developments include some 16,000 single- and multi-family lots, plus 5,700 acres of land for commercial or retail use.
CalPERS is taking a $250 million loss on the deal, said pension fund spokesman Brad Pacheco.
Another CalPERS spokesman, Wayne Davis, said CalPERS invested in the lots in three phases beginning in 1995, in a partnership with Newland Real Estate Group of San Diego. Newland is retaining its share of the housing developments and has formed a partnership with the Japanese company.
Davis said the move is in line with a new strategy, adopted in February, that steers away from undeveloped land in favor of established, income-producing properties like shopping malls. CalPERS lost billions during the housing crash, and the new strategy is considered safer.
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