GLOBAL - Massachusetts Pension Reserves Investment Management (Mass PRIM) has issued a request for proposal for a core, separate account real estate manager.

The request, issued in conjunction with real estate consultant Callan Associates, will see a new manager take over a portfolio of properties previously managed by RREEF.

Mass PRIM terminated its relationship with RREEF earlier this month, voicing concerns about the manager's ability to retain portfolio managers. 

RREEF has lost three people at this position over the last three years.

The new manager will assume responsibility for a mixture of existing assets and receive some additional equity that could be used to buy more properties, Mass PRIM said.

The existing part of the portfolio is valued at $728m (€592m) through the end of March 2010, but the pension fund estimated initial funding for the new manager could be as much as $750m.

The investment strategy for the account will be to invest in and oversee core assets in the US, including all four main property types: office, industrial, retail and apartments.

All responses are due back by 16 July, while Mass PRIM aims to make its final decision by 12 October. 

The new separate account manager will have an active account by 3 January 2011.

Mass PRIM has several minimal requirements for any managers interested in the search. 

One is that the manager must have $1bn of capital under management and needs to have $500m of core assets under management.

The pension fund also wants managers with experience in all of the major property types. 

It requires that each manager have at least $150m worth of assets under management in no less than three of the four main property types.

It also wants any potential manager to have run a separate account similar in size to Mass PRIM and seeks managers that have worked with pension funds that have total plan assets of at least $5bn.

 

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