West Midlands reappoints manager to £600m direct property mandate
West Midlands Pension Fund has reappointed CBRE Global Investors to manage its £622m (€776m) UK property portfolio and will give the manager more discretion.
The existing advisory mandate, which has been in place for seven years, will effectively be replaced at the end of September by a new discretionary one.
CBRE Global Investors had to re-tender for the new mandate, which will last for another seven years with an option to extend it by a further three.
The outgoing mandate was originally awarded to ING Real Estate Investment Management before the company was merged with CBRE’s investment management business to create CBRE Global Investors.
The directly-held UK real estate portfolio of the £10bn West Midlands Pension Fund includes a number of core assets, such as the 270,000sqft Arc Shopping Centre in Bury St Edmunds and the 54,000sqft office at 35 Newhall Street in Birmingham and as of March last year its real estate holdings were worth £838m.
Michael Daggett, fund manager at CBRE Global Investors described the three-month re-tendering process as “rigorous” and said the manager would seek to build on “the portfolio’s solid foundations”.