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GI Partners to Manage CalPERS' $3.4 Billion CalEast Industrial and Logistics Real Estate Portfolio
John Saer of KKR Joins GI As Managing Director To Oversee CalEast Business
MENLO PARK, Calif., Dec. 1, 2010 - The California Public Employees' Retirement System ("CalPERS") and GI Partners ("GI"), a Menlo Park, California based private equity firm, today jointly announced the formation of a new partnership by which GI will manage and invest in a $3.4 billion portfolio of CalPERS' industrial and logistics related real estate businesses. The portfolio transfer of CalEast Global Logistics ("CalEast") significantly increases the nearly $4 billion of assets currently under management by GI Partners.
CalEast owns and operates industrial, logistics and infrastructure-oriented real estate, including warehouses, light assembly, distribution centers, truck terminals, intermodal centers, and air cargo facilities throughout the United States and Canada. CalEast entities include CenterPoint Properties Trust, joint ventures with Aeroterm and North American Truck Terminals, and numerous development joint ventures. In total, CalEast platforms own and operate over 47 million square feet of industrial real estate and logistics infrastructure. "We are pleased that CalPERS has selected GI to be its partner in this significant investment," said Rick Magnuson, founder and executive managing director of GI Partners. "Our decade long relationship with CalPERS has been mutually rewarding and we look forward to continuing our partnership."
Concurrent with the transaction, GI Partners announced the addition of former KKR partner John K. Saer, Jr., who joins the firm as a Managing Director and Executive Chairman of the CalEast businesses. In his new capacities, Mr. Saer will oversee a dedicated team of GI executives managing the new CalEast partnership as well as direct GI's institutional separate account activities. "We are extremely fortunate to have an executive with John's extensive experience join our firm," said Rick Magnuson, founder and Executive Managing Director of GI Partners. "John's combination of private equity and operating experience, including his former roles as head of KKR's industrial and real estate investment groups, makes for an ideal fit in overseeing logistics related businesses such as CalEast."
The CalEast portfolio transfer to GI Partners is a continuation of the long-standing, successful relationship CalPERS has had with the firm since awarding it an initial $500 million mandate following a request for proposal process in 2000.