Massachusetts Pension Reserves Investment Management Board (Mass PRIM) has issued a request for proposal (RFP) to find a new US real estate investment trust (REIT) manager.
The pension fund expects to allocate an initial $100m (€91.8m) for the REIT manager search.
Mass PRIM’s decision to focus on domestic REITs is in line with its board’s asset allocation strategy approved in February. This strategy prioritises US REITs for their diversification benefits, risk-return profile, alignment with equity markets and favourable appraisal ratios.
As of the end of 2023, the pension fund’s REIT portfolio was valued at $986.2m. The portfolio consisted primarily of global holdings managed by CenterSquare Capital Management and Brookfield, benchmarked against the FTSE EPRA NAREIT Developed Index.
The deadline for proposals is 28 June, with the chosen manager expected to begin in early January 2025.
Mass PRIM said it will employ a separate account structure for the new manager, who must have at least $500m in total REIT assets under management as of 31 March 2024.
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