Possibilities include companies developing new technologies forthe real estate industry as well as providing space and services tocompanies in high-growth industries. CalPERS is expected to use thenew fund to acquire properties in tech-heavy markets, including theSilicon Valley, and the Research Triangle in Raleigh/Durham.According to Richard A. Magnuson, Executive Managing Director at CBRichard Ellis Investors, the merging of the real estate industrywith technology provides a unique opportunity to beef up the bottomline. "The Fund will target investments in the companies and realproperties which are leaders of this convergence in North Americaand Europe."

Tech isn't exactly a new industry for CalPERS. Already, thesystem holds interests in PropertyFirst.com, the California-basedcommercial property listing service. Additionally, CalPERS hasinvested in Broadband Communications, based in Falls Church, VA andAllied Riser Corporation out of Dallas. Both firms specialize inbroadband data, video and voice communications.