Lend Lease Corp. is expected to announce as early as Tuesday that it reached agreement to acquire Equitable Real Estate for more than $400 million, industry sources said. Equitable Real Estate will be merged with Yarmouth Group, a Lend Lease real estate manager subsidiary, sources said. Spokesmen for both firms declined to comment.
If the deal is finalized, Equitable Real Estate Chairman George Puskar will be chairman of the new company, and Equitable President Douglas Tibbetts will be president, sources said. Yarmouth CIO Daniel MacEachron and Equitable Senior Executive Vice President Paul Dolinoy will be co-heads of funds management, sources said. Matthew Bank and James Quill of Lend Lease will be CEO and COO respectively.
Institutional Property Consultants resigned as real estate consultant to the California State Teachers Retirement System, Sacramento. The board of CalSTRS had requested IPC Chairwoman Barbara Cambon meet with it this month to discuss the discretionary consulting and fund-of-fund activities in which IPC had become involved.
``CalSTRS appears to have entered a period of transition, during which we understand it will be re-evaluating its long-term investment strategy,'' Ms. Cambon said in a letter to the fund. ``During this period and until CalSTRS determines its strategic direction, IPC cannot effectively fulfill its commitment to provide superior advice as real estate investment consultant.''
The Louisiana House Retirement Committee yesterday passed a bill that would let three of the four largest public retirement systems boost equity holdings to 70% of assets from 55%.
However, the legislation would require the funds - the Louisiana State Employees' Retirement System, the Louisiana Teachers' Retirement System and the Louisiana School Employees' Retirement System - to invest 10% of their equities in an index portfolio. The Louisiana Police Pension and Retirement System still would need approval from legislators to increase its equity holdings.
Companion legislation is scheduled to be heard by the Senate Retirement Committee Monday.
The Ontario Teachers' Pension Plan Board, Toronto, selected Financial Models Co. to provide software services for portfolio management, performance measurement and attribution analysis, said Andrew L. Jones, vice president-finance for the C$50 billion (U.S. $36 billion) pension fund.
Stein Roe Mutual Funds registered a series of mutual funds specifically for retirement plans distributed only through financial advisers and fee-based financial planners. The no-load funds carry a 12(b)1 fee to facilitate distribution through adviser channels.
Stein Roe also launched a fund called the No-load Stein Roe Emerging Markets Fund. Portfolio managers will use a value discipline.