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.