June 15, 2015

External Affairs
(916) 795-3991
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Joe DeAnda, Information Officer

Deal to provide compelling return for pension system

SACRAMENTO, CA - The California Public Employees' Retirement System (CalPERS) today announced that it has agreed to sell its one-third ownership stake in North American real estate manager Bentall Kennedy. British Columbia Investment Management Corporation and Bentall Kennedy's management partners own the other two-thirds of the company, and will sell along with CalPERS to Sun Life Investment Management for C$560 million.

"CalPERS looks forward to working alongside Sun Life Investment Management, building on its 17-year longstanding relationship with Bentall Kennedy," said Paul Mouchakkaa, CalPERS Senior Investment Officer for Real Assets.

CalPERS will continue to do business with Bentall Kennedy, using them as an external real estate investment manager in its Real Assets program. The System currently has approximately $900 million invested with the firm.

CalPERS purchased the one-third ownership stake in the company in 2012 for approximately $100 million. The investment allowed CalPERS to engage its staff with an experienced real estate and investment management team. Todays announced sale will likely result in a compelling return for the System.

Bentall Kennedy is one of North America's largest real estate investment advisors and one of its foremost providers of real estate services.

For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.7 million members in the CalPERS retirement system and administers benefits for 1.4 million members and their families in our health program. CalPERS' total fund market value currently stands at approximately $300 billion. For more information, visit www.calpers.ca.gov.