mast image

Special Report

Impact investing

Sections

LaSalle wins £750m Greater Manchester Pension Fund property mandate

Related images

  • Millennium Bridge, Lowry Centre, Manchester

Related Categories

The Greater Manchester Pension Fund is outsourcing its UK property portfolio to LaSalle Investment Management.

The £750m (€944m) mandate will see LaSalle manage existing GMPF properties as well as invest in new properties in the UK.

The mandate could increase to £1bn.

The pension fund decided to outsource its domestic real estate portfolio last year. 

<

As previously reported in November last year, Peter Morris, director of pensions at GMPF, told IPE sister publication IP Real Estate the fund did not possess the internal resources to increase the value of the pension fund’s property assets and the size of its holdings.

The GMPF’s tender came with a requirement that an external manager have at least £3bn of UK property assets under management.

LaSalle said it currently manages around £10bn in the UK.

GMPF’s seven-year contract ncludes a four-year framework agreement with CBRE and DTZ, in effect making them ’back up’ managers.

As previously reported, the mandate had an option to extend by five years and comes with triennial fee reviews.

According to the pension fund’s 2013 annual report, property made up approximately 6-7% of its £12.6bn portfolio, with a benchmark allocation to the asset class of 10%.

LaSalle, which has $50bn (€38bn) of assets under management, said it would initially target UK properties worth up to £75m on behalf of the fund.

Councillor Kieran Quinn, Tameside Council leader and GMPF chair, said: “This is a significant mandate that can rise up to £1bn, and we hope LaSalle can make a significant long-term contribution for the fund’s returns.”

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<