Warren (Mich.) General Employees' Retirement System is considering balanced management for its $100 million fund, said Christine Cassani, accountant. Board members are discussing whether to abandon the current portfolio structure of 60% equity, 35% fixed income and 5% real estate, run by seven managers. Members feel a balanced approach using fewer managers might improve return, Ms. Cassani added.
Discussion may continue at the July 30 board meeting. Smith Barney is assisting.
Meridian Industrial Trust, a public REIT, agreed Thursday to acquire 29 industrial properties from the $16 billion Ameritech pension trust for 7,312,555 shares of common stock.
The transaction - expected to close in August - is valued at $161.8 million, based on Meridian's May 28 closing price of $22.12.
Meridian also paid $196 million to Prudential for 57 industrial buildings and 179 acres ready for industrial property development.
In a separate transaction, the insurer and its pension fund real estate money manager - Prudential Real Estate Investors - will purchase $140 million of Meridian common stock. Upon completion of the transaction, Ameritech will own about 30% of Meridian's outstanding shares, and Prudential will own 23%.
