SOMERVILLE, Mass. — The Somerville Contributory Retirement System is searching for a real estate manager to run up to $5 million for the $137 million fund. The search was prompted by the upcoming liquidation of one of the system's real estate funds. Tony Ferrelli, systems accountant, declined to identify the fund being liquidated; SSR Realty and UBS Realty Investors both manage real estate assets for the system. RFPs can be obtained by e-mailing Mr. Ferrelli at [email protected] The deadline is Nov. 12; a new manager should be chosen by the end of December.
REAL ESTATE: Somerville to put $5 million with realty manager
CHAMPAIGN, Ill. — The Illinois State Universities Retirement System will be studying ways to more than double the $12.4 billion system's real estate allocation, said James M. Hacking, executive director. The system's 2.5% allocation target will gradually rise to 7% over several years; the current $330 million allocation is in real estate investment trusts.
Board members want to study "how to implement a strategy to obtain additional exposure to a broad spectrum of real estate investments," considering a broad range of strategies, Mr. Hacking said. No timetable has been established for developing an investment plan.
BATON ROUGE, La. — The Louisiana School Employees' Retirement System might make its first move into real estate, said Julia LeBlanc, chief investment officer. Consultant Segal Advisors recommended a 3% allocation to a diversified commingled real estate fund as part of an asset allocation study of the $1.4 billion pension plan.
Segal officials will meet with plan trustees Nov. 22-23, when a decision on a new allocation might be made. The system's asset allocation is 49% domestic equity, 42% fixed income, 8% international equity and 1% cash, Ms. LeBlanc said.
DAYTONA BEACH, Fla. — Daytona Beach Police & Fire Pension Fund hired U.S. Bancorp to manage about $5 million in a real estate investment trust, said Nick Schiess, plan administrator with Pension Resource Center, the $98 million pension fund's third-party administrator.
Apart from "a tiny bit" of direct real estate, the REIT is the fund's only alternative investment in its overall portfolio. Funding will come from reducing equity allocations, said Mr. Schiess.
James C. Maniak, Daytona Beach director-finance, referred questions to Pension Resource Center.
The plan's remaining asset allocation is 59% domestic equity, 31% fixed income and 5% international equity. Milliman USA assisted.
JACKSONVILLE, Fla. — The Jacksonville Police & Fire Pension Fund is choosing finalists in its search for a domestic value-added real estate manager to handle $40 million and will likely interview firms in November, said Dick Cohee, deputy executive director.
The $900 million pension plan also committed up to $45 million to a JPMorgan Fleming domestic core real estate portfolio.
Funding for both allocations will come from reducing the plan's 40% fixed-income allocation; the remaining 60% of assets are in equities.
Merrill Lynch is assisting.
SACRAMENTO, Calif. — CalEast Industrial Investors, a joint venture between LaSalle Investment Management and the $170 billion California Public Employees' Retirement System, purchased a 47-acre site in Brampton, Ontario. The purchase price was not disclosed.
It is the joint venture's first acquisition in Canada. CalEast and Panattoni Development plan to develop the property into two 1.1 million-square-foot industrial buildings for bulk warehouse and distribution space.
OTTAWA, Ontario — CPP Investment Board and RioCan Real Estate Investment Trust formed a joint venture to acquire regional shopping centers in Canada, said John Cappelletti, manager, communications and stakeholder relations for the board, which handles all equity investments for the C$73.2 billion (US$58.1 billion) Canada Pension Plan, Ottawa.
The board and RioCan will acquire the shopping centers as core, long-term holdings on a 50/50 basis, and RioCan will provide asset management services.
Separately, the CPP Investment Board and Osmington Inc. purchased White Oaks Mall, a regional shopping center in London, Ontario, for C$183 million.
The purchase was part of an additional C$250 million commitment to an income-property real estate portfolio co-owned with Osmington, bringing the CPP's total commitment to C$450 million. CPP's real estate target allocation is up to 10% of the portfolio.
HARTFORD, Conn. — Tony Pierson was named managing director, portfolio management, at Cornerstone Real Estate Advisers, effective in October, said Jennifer Pearl, spokeswoman. The position is new.
He will be portfolio manager of the $545 million Cornerstone Property Fund. Mr. Pierson was head of strategy and research at CIGNA Realty Investors and managing director of the $1.4 billion CIGNA Charter Open-End Real Estate fund.
He was not replaced because the fund he managed adopted a plan of liquidation on April 1 and was transferred in the second quarter to Prudential Property Investment Separate Account, which is managed by Prudential Insurance Co. of America, according to a report on the company's website.
BOSTON — CrossHarbor Capital Partners is the new name of Boston Capital Institutional Advisors, an alternative investment real estate manager.
Company officials wanted the firm's name to underscore the national nature of its business, according to a statement by William H. Kremer, co-founder and managing partner.