Mass PRIM awards $1bn of real estate separate accounts
Massachusetts Pension Reserves Investment Management Board (Mass PRIM) has awarded three US real estate separate-account mandates worth $1bn (€884m) in total.
Following a search for investment managers, the $71.7bn pension fund said in a board meeting report that it is allocating $400m to CBRE Global Investors, $400m to Stockbridge Core and Value Advisors, and $200m to DivcoWest.
A request for proposals issed in March by real estate consultant The Townsend Group prompted 16 responses. Shortlisted managers included Bentall Kennedy, BlackRock, Clarion Partners and L&B Realty Advisors.
Mass PRIM said CBRE Global Investors and Stockbridge will have a primary mandate to acquire core US office, industrial, retail and apartments assets. They will also be able to invest in non-core assets subject to Mass PRIM’s approval.
DivcoWest will focus mostly on core-plus office assets in primary and secondary markets, although it will be able to invest in other sectors where appropriate.
CBRE Global Investors and DivcoWest declined a request for comment, and Stockbridge was unavailable.