Guizhou real estate investments rise 60 percent

The real estate market in Guizhou has grown rapidly this year, with expected investments of 140 billion yuan ($ 22.16 billion), a year on year increase of 60 percent, as reported by the Guizhou Provincial Development and Reform Commission.

Liu Yuankun, director of Guizhou Provincial Development and Reform Commission, said,"back in 2008, the total value of real estate investments in Guizhou province accounted for half of Guangxi Zhuang autonomous region's property market (half of Yunnan province's and one third of Chongqing's). This year, the value will reach a similar value for Guangxi and Yunnan, which equates to half of Chongqing's real estate investments."

Guizhou has accelerated public housing construction. The target number of public housing projects for this year would be 100,400 houses, 100,000 homes have already been completed.

Guizhou is among the first batch of trial provinces to exploit the mild slope of low mountains and hills. Statistics show that, Guizhou has been granted construction land of 253.73 square kilometers, including 33.33 square kilometers of mild slope of low mountains and hills.

Guizhou plans to complete the fixed assets investments of 1 trillion yuan in 2013, a targeted increase of 30 percent. Real estate investments could reach 150 billion yuan. It would launchthe start of construction for 250,000 public houses in the coming year and is expected to build 85,000 houses by the end of the year.

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CalPERS real estate investments return 14.3%

CalPERS’ real estate investments returned 14.3% for the 12 months ended June 30, above the $12.5 billion portfolio’s benchmark return of 12.6%, according to agenda materials for Monday’s meeting of the pension fund’s investment committee.

However, the $240.7 billion California Public Employees’ Retirement System’s real estate portfolio underperformed its benchmark for the second quarter as well as for three, five and 10 years, all ended June 30. The portfolio returned 1.2% for second quarter, 5.2% for three years and -12.6% for five years and 2.5% for 10 years compared to the benchmark returns of 2.5%, 10.4%, 4.1% and 9.2%, respectively. All multiyear returns are annualized.

The Sacramento-based pension fund’s absolute-return portfolio returned 2.99% for the year ended Sept. 30, less than its 5.28% benchmark but above the HFRI Fund of Funds Composite index return of 2.84%.

The $5 billion portfolio has underperformed the benchmark for three- and five-year returns and since inception, but has outperformed the HFRI in each time period. The portfolio returned an annualized 3.41% for three years and 0.37% for five years, compared the benchmark’s 5.6% and 6.8% returns, respectively, and HFRI’s 1.47% and -1.64%, respectively. Since inception in April 2002 through Sept. 30, the portfolio returned 5.46% vs. 7.26% for the benchmark and 3.32% for the HFRI.

The $1 billion infrastructure portfolio returned 3.7% for the year ended June 30, compared to the benchmark return of 5.7%.

However, the portfolio outperformed the benchmark by 21.3 percentage points and 4.1 percentage points for three- and five-year returns, respectively. For three years, the portfolio returned 28.1% vs. 6.8% for the benchmark; five years, 10.9% vs. 6.8%; and since inception in February 2007, 8% vs. 6.9%. For the quarter ended June 30, the portfolio returned -0.9% vs. 1% for the benchmark.

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