Prupim to outsource UK services as it eyes global funds expansion

GLOBAL  - Prupim is in exclusive discussions with CB Richard Ellis with a view to outsourcing its real estate management and accounting services in the UK.

The move would see the day-to-day property management delegated, while the firm's investment process would be unaffected.

The real estate investment manager, which is part of UK life insurer Prudential's asset management business, is planning to expand its third-party fund management business in the UK and globally, and consequently has been looking to outsource some of its business lines.

Martin Moore, managing director at Prupim, said: "This intention reflects our plans to capitalise on our core capability as a global property fund manager.

"Partnering with CBRE, a world-class real estate property manager, will give PRUPIM more flexibility to meet the needs of a wider range of institutional and retail fund management clients and mandates."

He added: "CBRE has a strong track record and deep level of capability that will ensure property management services continue to be delivered to a very high standard, and we have a shared commitment on how the partnership will work in the future."

CBRE was selected as the preferred bidder to run Prupim's property management and accounting services following a detailed appraisal process, although the selection is still subject to the outcome of a satisfactory due diligence process and final approval.

Mike Strong, CEO and chairman at CBRE EMEA, said: "It is enormously satisfying for CB Richard Ellis to have entered into this exclusive arrangement with such an esteemed partner.

"Our selection to enter into these talks validates the resources we have invested in our people and systems.

"Following what has been a highly competitive and detailed process we look forward to concluding discussions satisfactorily and to working with our new colleagues at Prupim."

Prupim expects that between 80 and 90 employees would transfer to CBRE and would remain responsible for the property management and accounting in relation to Prupim's UK assets.