Connecticut Retirement Plans & Trust Funds, Hartford, hired American Realty Advisors and Hart Realty Advisors as “preferred vendors” for core real estate separate accounts, confirmed Christine Shaw, chief of staff for Connecticut State Treasurer Denise Nappier.
Both hires are subject to successful contract negotiations, Ms. Shaw wrote in an e-mail response to questions. Ms. Nappier is the principal fiduciary for the $25 billion system, which consists of six state pension funds and eight state trust funds.
Hart will assume $156 million that had been managed by AEW Capital Management. American Realty Advisors will manage a new separate account with an initial commitment of $150 million, Ms. Shaw wrote.
Invesco Real Estate was the other semifinalist recommended by M. Timothy Corbett, chief investment officer of the state pension system, in a March 30 memorandum to Ms. Nappier. Each firm made a presentation at the April 13 meeting of the Investment Advisory Council, which advises the state treasurer on investment policies.
AEW was invited to rebid. Mr. Corbett’s memo said AEW was not recommended “due to the strong candidates within the core real estate pool, the potential for opportunity of utilizing specialized focused core real estate programs and an overall better fit with the mandate requirements” for the state system.
The search for the managers was announced by Ms. Nappier in December and was prompted by state procurement procedures that required a competitive search process.