UNITED STATES - Tennessee Consolidated Retirement System is beefing up the range of separate account real estate managers it invests with.
The pension fund has renewed relationships with four existing managers and added three new managers to its investment programme.
Tennessee will continue to work with Cornerstone Real Estate Advisers, ING Clarion Partners, JP Morgan Asset Management and TA Associates but will no longer work with Principal Real Estate Investors as the company has decided not to renew its contract.
Instead, the pension fund has created new non-discretionary relationships with RREEF - the real estate arm of Deutsche Bank - UBS Realty Investors and Capri Capital Advisors as it believes working with more managers will give Tennessee more opportunities to grow its real estate portfolio.
This is now more necessary than ever as financing is becoming hard to find on deals and there is now a significant difference between the bid and offer price of many acquisitions.
Tennessee has a history of investing conservatively in real estate and most of the assets are traditional core real estate.
This could change, however, as the managers brought into the investment program - RREEF, UBS and Capri Capital - all have a history and a track record of investing in non-core or specialist real estate.