California Teachers’ Pension Fund Names Director of Real Estate

News release

Sacramento, CA – Mike DiRe has been selected as director of real estate for the California State Teachers’ Retirement System. DiRe, 38, has fifteen years experience in real estate and finance, most recently as a real estate portfolio manager at the California Public Employees’ Retirement System.

DiRe will direct a staff of four who manage a real estate investment portfolio of $3.2 billion as of April 30, 2000. Real estate is a growing area of investment within the CalSTRS investment management plan. CalSTRS is working toward a $5.5 billion (5 percent) strategic target in the $111 billion investment portfolio. Since April 1998, real estate investments have increased by $1.3 billion.

The CalSTRS real estate portfolio consists of traditional properties, such as offices, apartments, retail and industrial and non-traditional properties, such as hotels. In addition, the portfolio includes partnerships and commingled fund investments.

DiRe will assume his duties on July 1, 2000. He was selected following a six-month nationwide search conducted by Heidrich and Struggles to fill the vacancy at the nation’s third largest pension fund. The position opened following the November 1999 departure of Mitch Pleis.

“Mike was the top candidate based on his balanced career experience in both the public and private sectors and knowledge in core and specialized real estate investments,” said Chief Executive Officer James D. Mosman. “Under his direction, we expect the real estate portfolio to increase its positive impact on the overall portfolio.”

A Sacramento native, DiRe holds a Bachelors of Science degree with honors in business administration from California State University, Sacramento. After completing his degree, DiRe joined Liquidity Fund Financial Group in Emeryville as a senior analyst. He then worked for Paterson Financial Services in Lafayette and Deloitte and Touche Real Estate Consulting Group in San Francisco before joining CalPERS in 1994.

At CalPERS, DiRe is currently responsible for the Core Retail Portfolio with an unleveraged value of approximately $2 billion. In addition, DiRe has had leading roles in developing or managing such programs as the California Urban Investment Partners, Single Family Land Development, CalPERS Indexed REIT Portfolio and CNL Triple Net Leasing Program.

Established by law in 1913, CalSTRS provides retirement benefits to more than 161,400 of the state’s retired public school teachers and their families. More information on CalSTRS is available at its Web site, www.calstrs.ca.gov.
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