CalPERS hired Park Hill Group to assist in selling up to $3 billion of its $25.5 billion real estate portfolio on the secondary market, the Sacramento-based retirement system announced Tuesday to Pensions & Investments. 

The sale, which is expected to be completed by the end of 2015, marks the first move under the pension fund's plan to reduce its total number of external investment managers to roughly 100 from around 200 by 2020 and reduce “costs, risks and complexity” across the $304.5 billion pension fund, said a CalPERS news release. The reduction plan was announced earlier this month by Theodore Eliopoulos, chief investment officer of the California Public Employees' Retirement System, Sacramento.

“For the real estate program, (the sale) will enable us to invest in assets and managers that are more aligned with our current strategy,” said Paul Mouchakkaa, senior investment officer for real assets at CalPERS, in the news release.

The sale applies to only the non-housing funds in CalPERS' legacy portfolio, a small piece of the total real estate portfolio that “no longer fits (CalPERS') strategic goals,” spokesman Joe DeAnda said in an e-mail.

Mr. DeAnda added that it has not been determined how many managers or funds will be affected and how.

As of Dec. 31, the total real estate legacy portfolio comprised 79 funds and 58 managers, a performance report said.