Chicago Public School Teachers' Pension & Retirement Fund plans to issue an RFP in a search for managers to run at least $65 million in non-core real estate and is considering issuing two other RFPs totaling $125 million, according to Carmen Heredia-Lopez, chief investment officer.
The $9.9 billion fund expects to issue the real estate RFP “sometime this year to capture market opportunities and vintage-year diversification,” Ms. Heredia-Lopez said in an e-mailed response to questions.
In addition, pension fund staffers are working with Townsend Group, the fund's real estate investment consultant, to evaluate recommendations to authorize an RFP for $75 million in core open-end real estate and an RFP for $50 million in infrastructure, Ms. Heredia-Lopez said.
The fund has a 9.5% (or $939 million) allocation to real estate, excluding real estate investment trusts. It has a $335 million or 3.4% allocation to infrastructure.
Also, the fund's board plans to lower the REIT portfolio toward its 2% allocation target and will reduce REIT managers as well.
The fund has a $262 million or 2.7% allocation to REITs, managed by Morgan Stanley Investment Management with $103.6 million; CenterSquare Investment Management, formerly Urdang Capital Management, $92.8 million; and Adelante Capital Management, $66 million.
“The decision on how that (reduction) will be executed has not been made yet,” Ms. Heredia-Lopez said in her e-mail.
A time frame for issuing the planned or expected RFPs and other real estate decisions hasn't been set.
The allocations are based on Aug. 31 valuations.