CalPERS Approves $40 Million Increase to California Land Development Program.

SACRAMENTO, Calif.--(BUSINESS WIRE)--Dec. 15, 1998--The California Public Employees' Retirement System (CalPERS) approved today a $40 million increase in financing for single family land development in California.

The additional capital is expected to tap significant investment opportunities fueled by California's growing homebuilding industry.

"Major California markets are experiencing a critical shortage of housing lots," said Charles P. Valdes, Chair of CalPERS Investment Committee. "Today's action will help meet this demand while providing an economic stimulus to California's growth and attractive returns to CalPERS investment portfolio."

The $40 million increase was allocated to Newland Capital Advisors, one of seven real estate partners participating in CalPERS Acquisition and Development (A&D) Program. Newland already invests $60 million for CalPERS in five residential developments throughout the State, and has projected to earn more than a 21 percent rate of return on its investments as of June 30, 1998.

Currently, Newland's investments include Sacramento's Whitney Oaks residential community, Paseo del Sol in Riverside County, Storke Ranch in Santa Barbara County, Cobblestone Creek in Orcutt, and WestGate Ranch in Santa Maria.

"Demand for housing has been fueled not only by economic growth but also by the continued maturation of California's burgeoning immigrant population," said Derek Thomas, Chief Investment Officer of Newland Capital Advisors. "Although we have observed a recent slowdown in absorption at the very highest priced end of the housing market...growing wages and rising employment in the major metro areas are continuing to generate strong demand for most entry-level and moderately priced housing."

According to Newland, the best long-term potential for housing investment exists in four areas including North San Diego County, South and North Riverside County, Tracy/Stockton area in San Joaquin County, and Rocklin and Roseville in Sacramento County.

In 1994, CalPERS earmarked $480 million for the creation of the System's A&D Program to supplement the shortage of supply of capital for California builders and developers. Capital from lots that are sold are available for reinvestment. Thus far, CalPERS has committed to develop over 17,000 lots at a total cost of more than $1 billion.

CalPERS is the nation's largest pension fund managing assets totaling more than $145 billion as of December 10, 1998. The System provides retirement and health benefits to 1 million State and local public employees and their families. For further information on CalPERS, please visit the System's web site at http://www.calpers.ca.gov.

Newland is a national developer and investor in master planned communities. Over the past 30 years, Newland has been responsible for developing thirty communities in seven states, including California.