CBRE Global Investors, the Los Angeles-based firm, has won a competitive tender to manage the direct property holdings of one of the largest UK pension funds.
The London division of the global goliath said it had been re-appointed by West Midlands Pension Fund, which possesses total UK property holdings of more than £622 million (€778 million; $1 billion).
Explaining how the mandate is actually a step-up for the firm, CBRE Global Investors said that while the existing contract – expiring on 30 September 2014 – was an advisory one, the new mandate was discretionary and would be in place for an initial seven-year period with an option to extend for a further three.
Michael Daggett, fund manager, added the company had been through a “rigorous re-tendering process” in order to win it.
The West Midlands Pension Fund provides pension services to more than 267,000 current and former employees of the seven West Midlands district councils. It is one of the largest funds in England and Wales with around £10 billion of assets and owns mainly core property holdings. Its assets include the 270,000 square foot Arc Shopping Centre in Bury St Edmunds and the 54,000 square foot Newhall Street mall in Birmingham.