Mass PRIM approves global REIT manager search

The Massachusetts Pension Reserves Investment Management Board (Mass PRIM) is going ahead with a search for global REIT managers.

The pension fund ended its REIT separate account with EII Capital Management in October last year

Since dropping EII, Mass PRIM has sold off some of the portfolio.

As of March this year, the portfolio, benchmarked against the FTSE EPRA NAREIT Developed Index, was valued at $153m (€136m). 

At the time the relationship was ended, the value of the portfolio was $510m. 

The portfolio was transferred to Invesco Real Estate on a temporary basis.

Tim Schlitzer, senior investment officer for real estate and timberland at Mass PRIM, said the fund would consider REIT managers that complemented its existing investment programme.

“The timing of our search will be to have made a decision and to have the new relationship started during the first quarter of 2016,” said Schlitzer.

Mass PRIM has two other global REIT portfolios, managed by Invesco and CenterSquare Investment Management.

The portfolios are valued at $282.4m and $805.9m, respectively.

Mass PRIM has added two more separate account acquisitions to its private real estate portfolio through deals closed by LaSalle Investment Management.

One property was the $65m purchase of the 146-unit La Belle apartment complex in Hollywood Hills, California, at a 3.7% yield.

The other investment was the $68m acquisition of a 1.5m sq ft Cleveland Street industrial property in Dallas.

The pension fund estimates the deal reflected a 5.4% yield.

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