SACREMENTO, CALIF. — The California Public Employees’ Retirement System (CalPERS), the largest public pension plan in the U.S., has purchased a one-third stake in Bentall Kennedy, a Toronto-based real estate investment advisory firm, and is now a partial owner. The remaining two-thirds of the limited partnership ownership is evenly split between the British Columbia Investment Management Corp. (bcIMC) and Bentall Kennedy’s senior management team.
Founded as a small construction company in 1911, Bentall Kennedy now serves the interest of more than 500 clients with U.S. and Canadian real estate holdings totaling $28.7 billion as of March 2012.
“Bentall Kennedy has a track record of fiduciary excellence and is a global leader in environmental, social and governance practices,” says Rob Feckner, president of the CalPERS Board of Administration. “This relationship will allow our real estate team to further expand on trends and opportunities in real estate investment and management.”
Victoria, British Columbia-based bcIMC handles a global investment portfolio valued at $91.1 billion as of Dec. 31, 2011. The firm’s clients include public sector pension plans, public trusts and insurance funds.
“CalPERS is a complementary and welcome addition to the Bentall Kennedy Group,” says Doug Pearce, CEO and chief investment officer of bcIMC. “bcIMC and CalPERS are like-minded institutions with similar investment goals and core values. We admire the leadership of the CalPERS team in the U.S and look forward to the opportunity to work more closely together as they become a co-investor in Bentall Kennedy.”
CalPERS has acquired the ownership interest from Ivanhoe Cambridge, a subsidiary of one of Canada’s leading institutional fund managers, the Caisse de depot et placement du Quebec.
“We have been very pleased with the success in our equity investment in Bentall Kennedy,” says Daniel Fournier, chairman of the board and CEO of Ivanhoé Cambridge. “It was the product of an effective and mutually beneficial relationship.”
“Ivanhoé Cambridge has been a significant owner in our firm for almost 20 years,” says Gary Whitelaw, group CEO of Bentall Kennedy. “We have been very privileged to learn from their talented people represented on our Board and within their real estate operations. The seamless transfer of their ownership to a new strategic partner is beneficial for all involved.”
CalPERS has been a Bentall Kennedy client for more than 15 years and will continue to utilize the firm’s research and investment services. CalPERS administers retirement benefits for more than 1.6 million California state and local employees, as well as public school employees.
“This important endorsement confirms our position amongst the industry leaders across North America,” says Whitelaw. “Through this close association with world class plan sponsors such as bcIMC and CalPERS, our organizations will continue to learn from each other to the benefit of all clients, tenants and employees in both Canada and the United States.”
— John Nelson