CalSTRS and KTCU Poised to Do Second Real Estate JV

By David G. Barry

Five months after agreeing to launch their first real estate joint venture, the California State Teachers’ Retirement System (CalSTRS) and the Korean Teachers’ Credit Union (KTCU) appear poised to do a second.

Under an investment partnership signed by the two teacher pension funds, KTCU said it and CalSTRS will discuss starting a second real estate JV, invest in a broader range of assets and strengthen their collaboration.

 A CalSTRS spokesperson said the $301.5 billion system did not have additional comment about the new JV, which was disclosed by The Korea Economic Daily.

KTCU managed 42.4 trillion won (US$308 billion) as of December 31, 2021. 

In March, KTCU and CalSTRS struck an agreement to launch a $505.2 million JV to invest in U.S.-based logistics centers.

KTCU has previously established three JVs with Teachers Insurance and Annuity Association of America (TIAA), totaling $1.5 billion. The first, done in 2014, invested $1 billion in U.S. commercial real estate. The second, also $1 billion, was formed in 2017 to invest in U.S. real estate debt. The two funds created a $510 million JV in 2019 to expand co-investments.