Simon DeBartolo Group, the largest publicly traded real estate investment trust, bid $19.37 a share yesterday for the Retail Property Trust, a $1.1 billion private REIT owned largely by pension funds.
The bid was the highest of eight submitted by other public REITs and investor groups. It also exceeds a proposal by O'Connor Group, manager of RPT, to merge RPT's regional malls with those from two developers and roll them up into a $4 billion to $5 billion public REIT.
The IPO proposal, called Grand Slam, involved the merger of regional malls from The Richard E. Jacobs Group and New England Development. The company would own 52 and would manage another 33.
``We have the ability to match the offer,'' said RPT President Bruce Macleod. ``That is under consideration now.''
California State Teachers' Retirement System board members yesterday approved beginning internal domestic equity management with a $1 billion S&P 500 index fund. The money will come from Barclays Global Investors, which runs a $17 billion S&P 500 index portfolio for the $80 billion Sacramento-based system. Funding of the internal S&P 500 fund should begin in March, subject to CalSTRS board approval of policies and procedures to begin internal indexin
EDO Corp., College Point, N.Y., is considering adding several investment options to its $20 million 401(k) plan, said William J. Frost, vice president-administration.
The plan is studying the type and number of options, but is leaning toward several in equities. It expects to stay with Massachusetts Mutual, its existing bundled provider, which now offers the plan's three investment options.
A decision may be made before the end of the year.
Rhode Island State Retirement Board, Providence, hired Watson Wyatt Worldwide as actuary for its $5.5 billion pension fund. Watson Wyatt replaces William M. Mercer, whose contract expired earlier this year. The board also interviewed Milliman & Robertson.
SEARCHES & HIRINGS
Eskom Pension and Provident Fund, Bryanston, South Africa, will hire up to five international equity managers to run 1.2 billion rand ($255.2 million) by year-end, said Linda Fleming, financial engineer. The fund has not yet chosen finalists. The fund also is seeking a global custodian, which likely will be named by late November.
The 13 billion rand ($2.77 billion) state-owned electricity company pension fund already has engaged in swaps totaling nearly 10% of assets, the legal limit South African funds can invest abroad. An undisclosed portion of those assets are invested in non-South African bonds with the balance being a reserve with the South Africa Reserve Bank.
California Public Employees' Retirement System, Sacramento, named ANB Investment Management, Dimensional Fund Advisors and State Street Global as finalists for a search for a domestic passive small-cap equity manager. DFA is the existing manager, with a roughly $1.2 billion portfolio. The search is being done by staff of the $124 billion system with assistance from Wilshire Associates. Final interviews are expected in November. A choice could be made then.
CITGO Petroleum Corp., Tulsa, Okla., hired Wellington Management and Grantham, Mayo, Van Otterloo to manage core EAFE international equity portfolios of $20 million each. Funding will be from a rebalancing of U.S. equity assets, said Vickie Ferguson, financial analyst.
She said the fund plans a small-cap equity search within the next few months. The fund has about $200 million in total assets. Merrill Lynch Consulting assisted.
University of California, Oakland, hired Warburg Pincus Counsellor to manage $142 million in a venture capital/private equity distribution strategy for its $29.9 billion defined benefit plan. The assets had been run internally. The search was done in-house.
Smith Barney Inc., New York, hired Hansberger Global Investors as subadviser for a new group of global investment funds. Thomas Hansberger, CEO of Hansberger Global Investors, formerly the president and CEO of Templeton Worldwide, will manage a group of mutual funds that may make their debut before the end of the year. The funds will be designed jointly by Hansberger Global and Smith Barney Asset Management.
Scott Lucas resigned as senior vice president and chief equity officer at AIM Capital Management. Gary Crum, president and director of investments, will assume Mr. Lucas' duties, along with other senior management staff. Mr. Lucas resigned to pursue personal interests, said a company spokesman.
CORRECTION: Albert Hsu, who will join Xerox Corp. as principal-trust investment, formerly was director, member services research, at The Common Fund. His former title was incorrect in the Sept. 4 P&I Daily