Illinois Firefighters Pension Investment Fund is redeeming its $220m (€187.4m) investment from a CBRE Investment Management fund, reallocating the capital to a rival open-ended US core real estate fund managed by Morgan Stanley.
The pension fund disclosed in a board meeting document that factors driving the decision to exit CBRE US Core Partners in favour of the Morgan Stanley Prime Property Fund, included a year of organisational changes at CBRE IM and unimpressive portfolio results.
Organisational changes at CBRE IM included Adam Gallistel replacing Kim Hourihan as global CIO, and Liz Troni replacing Larissa Belova as the core partners fund portfolio manager.
CBRE IM did not respond to a request for comment.
Illinois Firefighters Pension hired CBRE IM in August 2024. The internal organisational changes prompted the pension fund to halt commitments and search for a replacement via an RFP, leading to the Morgan Stanley fund being selected.
Illinois Firefighters Pension Fund found Morgan Stanley’s proposal favourable, citing the fund’s strong organisation, resources, team, track record, current portfolio, go-forward strategy and diversification attributes.
The Prime Property Fund had a net asset value of $30.5bn as of 30 June, with no incoming queue and a $2bn redemption queue.
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