Massachusetts Pension Reserves Investment Management Board, Boston, on Tuesday hired core real estate manager AEW Capital Management to run $400 million.
Just over $225 million of that total comes from eight of the 21 properties that RREEF had been managing for PRIM when the board terminated that firm’s $678 million mandate in June, citing continued portfolio manager turnover. The remaining $175 million in cash commitments are for future investments by AEW, said Timothy V. Schlitzer, the $45.5 billion system’s senior investment officer for real estate and timber.
The remaining 13 properties managed by RREEF will be allocated to the board’s four current core real estate managers — Invesco Realty Advisors, J.P. Morgan Investment Management, LaSalle Investment Management and TA Associates Realty — with each getting between two and four. The amount of money allocated to each will depend on the number of properties each receives.
Separately, the board approved $298 million in new private equity investments: a $150 million commitment to GTCR X, €60 million ($83 million) to Montagu IV; $50 million to Insight Venture Partners VII; and $15 million to Insight Venture Partners Coinvestment Fund II.