Park Hill to earn up to $1m from CalPERS’ real estate sale

The sale of $3bn-worth of real estate fund stakes will likely close before the end of the year.

Park Hill Group could receive as much as $1 million in fees from its contract with the California Public Employees’ Retirement System to sell a $3 billion portfolio of real estate fund interests, according to a CalPERS monthly update on investment compliance.

CalPERS said at the end of June it had selected secondaries advisory and placement firm Park Hill to help sell up to $3 billion of its real estate portfolio. The goal is to reduce costs and complexity across its fund.

The total amount for sale could vary based on market conditions and what the real estate market can absorb, the pension plan noted in June.

“Park Hill is advising on the sale and this is the amount charged for the service provided,” confirmed a spokesman for the $300 billion CalPERS. He also noted that the figure represents the maximum amount Park Hill could receive. The actual and final amount could be lower.

Park Hill began seeking offers from interested parties immediately after the announcement was made. CalPERS said a deal could be completed by the end of 2015.

“Closing will take a couple of weeks if not a couple of months,” said one real estate secondaries investor at a firm working on the offering. “There should be more visibility in September about who gets selected.”