CalPERS Acquires a Stake in London Gatwick Airport

GIP led the GBP1.5 billion (USD2.2 billion) purchase of Gatwick from BAA Ltd. in December 2009. The CalPERS commitment covers the equity purchase price and provisions for bridge costs and future administrative expenses.

Gatwick Airport is 28 miles south of London and serves approximately 33 million passengers a year, making it the UK's second most active airport and one of the busiest in Europe. Gatwick's business is regulated by the Civil Aviation Authority in the UK, which approves the airport's regulated asset base and its inflation-linked revenues.

The CalPERS acquisition is the first direct-style investment within its infrastructure program, which CalPERS launched in 2007 with a policy allocation of 1.5 percent of the Pension Fund's total market assets.

"We are pleased to acquire an interest in Gatwick for our infrastructure program," said Rob Feckner, CalPERS Board President.

George Diehr, Investment Committee Chair, said: "We are looking for opportunities to invest directly in high-quality infrastructure assets. We see it as a good fit for our burgeoning infrastructure program."

GIP is a USD5.6 billion fund founded by Credit Suisse and General Electric with offices in New York City, New York; Stamford, Connecticut; London, Hong Kong, and Sydney. It invests in infrastructure in OECD countries and select emerging market countries.

With approximately USD200 billion in assets, CalPERS is the largest U.S. public pension fund. It administers retirement benefits for more than 1.6 million active and retired State, public school, and local public agency employees and their families. For more information about CalPERS, visit www.calpers.ca.gov.