Derbyshire County Council Pension Fund is to increase its allocation to real estate while tendering for a new manager.

The UK pension fund, administered by Derbyshire County Council, is looking to add a “significant cash sum” to its direct real estate allocation.

The exact amount is still being decided by Derbyshire, which had a total £5.5bn (€7.6bn) of assets under management at the end of January this year.

Previous pension fund documents suggest an increase of £50m to direct property investment, up from 4.8% towards its ultimate aim of 6.8%.

The fund had £104m invested in the direct real estate sector, as of March last year.

A new real estate investment manager is being sought by the fund as it looks to move towards a more discretionary mandate.

Derbyshire will award a four-year contract, which can be extended up to a maximum 10 years including two three-year extensions.

The fund’s 12 commercial real estate assets – all in the UK and mainly in London – have so far been managed on an advisory basis.

The new mandate would include both operational and financial management of the fund’s existing property assets, as well as diversifying its portfolio.

Derbyshire has indirectly invested in property funds managed by Aviva Investors, BlackRock, M&G and Threadneedle, as well as in Unite’s UK Student Accommodation fund.

With £68m in property funds, Derbyshire is aiming to increase its allocation to indirect property investment to 7%.