Strathclyde Pension Fund, Glasgow, Scotland, hired DTZ to run its entire £750 million ($1.12 billion) U.K. direct real estate portfolio, said Jacqueline Gillies, chief pension officer for investments at the £10.3 billion fund.
DTZ replaces Aberdeen Asset Management, which was invited to rebid in a search that began in November. Fund officials wanted to test the marketplace in property managers, the first time they'd done so since Aberdeen was hired 20 years ago, Ms. Gillies said.
The fund also hired Partners Group to manage £200 million in global real estate, Ms. Gillies said. Details on funding could not be learned.
Fund officials have decided not to fund a U.K. real estate fund-of-funds mandate as previously considered.
The target real estate allocation remains at 12% of total assets, or £1.2 billion; Ms. Gillies said no decisions have been made regarding increasing the new real estate managers' mandate sizes to reach that target.
Separately, Strathclyde rehired Hymans Robertson as investment consultant after a search began in October. The fund's next asset-liability study is expected in 2011.