NORTH AMERICA – The Alabama Trust Fund board has approved a new Request for Proposal search for core commingled fund managers.
The pension fund has allocated $80m (€61m) for the new manager search.
Any respondents need to reply by 22 March.
Alabama has established several requirements for candidates.
Each applicant must have a portfolio manager that has managed a commingled fund for at least five years as of the end of last year, and the company must have managed real estate not less than five years.
It also needs to manage a current portfolio in excess of $1bn.
Alabama will consider open-ended or closed-end funds.
The scheme seeks to invest in a fund that owns a diversified portfolio of core property types across the US.
Alabama, which has $3.3bn in total plan assets, currently has a real estate portfolio valued at $76m, as at the end of September 2012.
In other news, the Ohio Bureau of Workers Compensation board has approved a $50m commitment into the Latitude Management Real Estate Capital III commingled fund.
Latitude, which is looking at a total capital raise of $550m, will make a $2m-3m co-investment into the fund.
According to a document written by Ohio's consultant, RV Kuhns, the targeted return for limited partners in the fund is 11-13% net IRR.
The fund will only be investing in assets in the US.
It has a debt strategy with a primary focus on first mortgage origination.
Collateral for the loans will zero in on multifamily, office and hospitality sectors, with loan sizes ranging from $5m to $25m.
The fund will make most of its investments in growth markets in the Southwest, South and Southeast regions, including Atlanta, Charlotte, Dallas, Houston, Phoenix, Raleigh and Tampa.