$15B Hawaii pension fund seeks a consultant for its real estate investments

The Hawaii State Employee Retirement System, which is underfunded and overcommitted by more than $12 billion, is looking for a real estate investment consultant to review the performance of its real estate managers and the overall program, Pacific Business News has learned.

The Employees’ Retirement System, which provides retirement allowances and other benefits to public employees and has an investment portfolio valued at more than $15 billion, wants a consultant to develop, periodically review and recommend changes to a five-year strategic plan for the real estate investment program, including a statement of program goals, quantifiable and qualitative objectives, policies and procedures and benchmarks, according to a request for proposals from ERS.

The consultant would also attend ERS meetings and help its staff and board with education on various real estate and real asset investment issues.

ERS, which was established in 1926, hopes to select a consultant by May 5 for a three-year contract ending on June 30, 2020, with a three-year extension as an option of ERS.

ERS, which has more than 74,000 active and inactive vested members and over 45,000 retirees and beneficiaries, did not specify what its chosen consultant would be paid for this project.

The pension fund plans to redevelop the lands surrounding its 100-acre, 36-hole Kaanapali Golf Course on Maui into a mixed-use development with homes, a hotel, restaurants, retail shops and entertainment, as first reported by PBN.

ERS has owned the 305-acre property that includes the golf courses for about a decade.

Duane Shimogawa covers energy, commercial real estate and development for Pacific Business News.

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