UK - Teesside Pension Fund is mulling an increase to its real estate allocation as it has issued a tender for the management of its £95m (€120m) directly-held UK portfolio.

The five-year contract will cover the scheme's £95m (€120m) directly held UK real estate assets. These make up around 70% of its real estate portfolio. The balance in held indirectly in the UK and overseas. 

Cushman & Wakefield currently manages the allocation on a rolling contract.

Fred Green, investment head at Teesside, said: "Property's a long-term business and you don't tend to jump between managers, but the procurement process just came around again."

Public pension fund regulations require periodic tenders but the local authority scheme, in northeast England, will announce the result in May and make the appointment at the end of the year, to coincide with the scheduled completion of an asset liability exercise which could lead to an increase in the scheme's real estate allocation.

"The ratio is likely to remain about the same," said Green. "It hasn't been decided yet and it isn't for me to say, but I'm fairly confident there'll be an overall increase."