Calpers Looking To Get Rid Of BlackRock
November 25, 2009 3:04 PM
Calpers is considering booting out its real-estate advisor BlackRock. This is the direct aftermath of the embarrassing debacle by BlackRock where it led the country’s biggest pension fund into a catastrophic investment in the Peter Cooper Village and Stuyvesant Town apartment complex.
This investment saw a massive decline of 48% in its net worth. Apart from this, another venture by Black Rock in partnership with Tishman Speyer Properties also failed miserably.
Such scenario has led the Calpers to review its ties with Black Rock, to whom it paid $ 12.6 million in real estate advisory fees last year. Earlier, Calpers severed ties with Macfarlane Partners too. Macfarlane Partners had advised Calpers on LandSource Communities Development LLC deal. Later, LandSource filed for bankruptcy and the deal is expected to cost Calpers about $970 Millions. However, Macfarlane had long successful history with Calpers.
