GLOBAL - The Iowa Public Employees Retirement System has approved a request for proposal (RFP) for a new domestic REIT manager, allocating approximately $150m (€113m) for the search.

Iowa PERS will conduct the search in conjunction with general investment consultant Wilshire Associates.

Pension fund officials said they decided to hire another domestic REIT manager to further diversify in the REIT space. RREEF currently runs a domestic REIT portfolio for Iowa PERS valued at $230m.

The pension fund has set a number of minimum requirements for interested managers.

Any applicant must have a minimum of $600m of capital under management in a REIT strategy as at the end of September, while each firm has must have experience running separate account investment programmes in real estate.

The RFP states that Iowa PERS could select more than one manager. The pension fund will award full investment discretion to the manager or mangers hired for the separate account. 

The REIT will be Iowa PERS's only new commitment planned for real estate for calendar year 2011. 

The pension fund said that once it added the new account, it would be close to its 8% targeted allocation for combined private and public real estate assets.

Iowa PERS had a real estate portfolio valued at $1.3bn and total plan assets of $21.1bn as at the end of September.

Responses to the RFP are due back by 6 January 2011. 

Iowa PERS is looking to make a manager recommendation to the board at its 25 March 2011 board meeting.