Oklahoma Teachers’ Retirement System, Oklahoma City, named AEW, Heitman, J.P. Morgan Strategic Property Fund and L&B Realty Advisors as finalists in its search for a real estate manager to run about $425 million, confirmed James Wilbanks, executive secretary.
It’s the $8.5 billion system’s first move into real estate, Mr. Wilbanks said in a telephone interview.
System executives will conduct due diligence visits to the four finalists’ headquarters in the coming weeks, and the finalists will make presentations at the system’s Aug. 25 board meeting, when the board will make its decision, Mr. Wilbanks said.
Separately, the board renewed the “on-alert” status of Goldman Sachs Asset Management, which runs about $520 million in active domestic large-cap growth equities for the retirement plan.
GSAM was put on alert in April because of organizational concerns related to a lawsuit filed against parent Goldman Sachs by the SEC. Goldman Sachs settled with the SEC earlier this month for a record $550 million over charges that it “misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse.”
“We were concerned that people would watch the headlines instead of watching what they need to be watching on their desk,” Mr. Wilbanks said, noting that the on-alert status is “precautionary.” The firm’s status will be reviewed again in December.