CBRE Investors poaches £150m mandate from rival

The LA-based real estate investment management business of global property services firm CB Richard Ellis, has won a £150 million separate account mandate formerly charged to Cushman & Wakefield Investors.

CBRE Investors has won a mandate from UK supermarket chain Tesco to invest on behalf of its pension fund, Tesco PLC Pension Scheme.

The discretionary mandate is close to being agreed, according to a source familiar with the matter.

It is understood that CBRE Investors will be asked to invest £150 million (€171 million; $232 million) in real estate on a direct basis.

Prior to the awarding of the mandate, Tesco’s pension fund invested through Cushman & Wakefield Investors, the real estate investment management platform of property services firm Cushman & Wakefield.

The mandate is further evidence of large institutional investors instructing investment managers to invest on a separate account basis in the UK.

Last year, for example,  the Pension Service of Korea appointed London-based Rockspring Property Investment Managers to acquire core London assets on its behalf.

CBRE Investors declined to comment.