LaSalle Investment Management has won the property mandate of the UK’s Royal Mail Pension Plan (RMPP), managing the pension fund’s entire property holdings, reportedly worth £1.6 billion (Euro: 1.7 billion).
The RMPP is the UK's fourth-largest pension fund and was previously managed by Hermes for around 27 years, according to a report by Property Week. However, Hermes came under criticism for failing to respond to a rising deficit and falling property values.
“We are delighted to have been selected by Royal Mail,” LaSalle UK managing director Alan Tripp confirmed in a statement. “At LaSalle we are highly focused on maximising investment performance.”
Last September, the Teacher’s Retirement System of Texas adopted a new investment strategy, hiring LaSalle to manage a separate account to invest $205 million into real estate as well as make future commitments to new projects.
As of 31 December, 2009, LaSalle’s total private European assets under management were valued at £13.4 billion, according to fund documents on LaSalle’s Web site.