Aug
18

S.C. Puts Pension Funds into Real Estate

By

Managers see chance to rake in double-digit returns

August 17, 2008

By John O’Connor – The State

South Carolina’s state pension managers see a chance for that $29 billion fund to profit from the real estate collapse that has affected much of the country.

Armed with their new ability to invest in real estate, the pension managers see commercial real estate as a good value, saying it could return double-digit profits for the state’s current and future retirees.

Using only a small portion of the pension fund to buy real estate minimizes the risk, they say.

But critics worry the commercial real estate market — including office buildings, malls and shopping centers — could suffer the same drop in prices that has hit homeowners, threatening money meant to pay for the retirements of tens of thousands of state workers.

Is the state smartly buying low — or is South Carolina hitching its fate to investments that have lost value and could lose more?

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:
http://www.thestate.com/local/story/492657.html

BLOG NOTE:
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This should be interesting. If anyone knows who the “advisors” are that they have hired, please e-mail me.
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MBD

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