Pension Fund, Magic Johnson May Team Up : Investments: Money would go to inner-city real estate ventures.

SACRAMENTO —  The nation’s largest public pension fund may team up with former Los Angeles Lakers star Magic Johnson to invest in inner-city real estate, officials said Wednesday.

The California Public Employees Retirement System said its board has tentatively approved investing $50 million in a joint venture with Johnson and real estate investment adviser Victor MacFarlane.

Pension fund officials said the money would be used to buy, develop or redevelop retail properties in heavily minority urban areas of California that have been largely ignored by retailers and developers.

Completion of the agreement depends on final negotiations between the pension fund, Johnson and MacFarlane.

“This program would bring many benefits to CalPERS and residents in these underserved areas,” said Charles Valdes, chairman of the pension fund’s investment committee.

“The investments would be based in California, would provide returns to the (pension) system commensurate with risk and would create economic opportunities for those living in the communities.”

Johnson, chairman and chief executive of Johnson Development Corp., said he and MacFarlane are “excited about getting a chance to give something back to these communities. Victor MacFarlane and I are looking forward to working with local community groups in planning and building these properties.

“Our program won’t just give people a better place to shop; it will also create the job opportunities they need,” he said.

MacFarlane is managing partner and chief executive of San Francisco-based MacFarlane Partners, America’s largest minority-owned real estate investment adviser.