Derbyshire County Council Pension Fund is to increase its allocation to real estate while tendering for a new manager.
The UK pension fund, administered by Derbyshire County Council, is looking to add a 鈥渟ignificant cash sum鈥� to its direct real estate allocation.
The exact amount is still being decided by Derbyshire, which had a total 拢5.5bn (鈧�7.6bn) of assets under management at the end of January this year.
Previous pension fund documents suggest an increase of 拢50m to direct property investment, up from 4.8% towards its ultimate aim of 6.8%.
The fund had 拢104m invested in the direct real estate sector, as of March last year.
A new real estate investment manager is being sought by the fund as it looks to move towards a more discretionary mandate.
Derbyshire will award a four-year contract, which can be extended up to a maximum 10 years including two three-year extensions.
The fund鈥檚 12 commercial real estate assets 鈥� all in the UK and mainly in London 鈥� have so far been managed on an advisory basis.
The new mandate would include both operational and financial management of the fund鈥檚 existing property assets, as well as diversifying its portfolio.
Derbyshire has indirectly invested in property funds managed by , BlackRock, and , as well as in Unite鈥檚 UK Student Accommodation fund.
With 拢68m in property funds, Derbyshire is aiming to increase its allocation to indirect property investment to 7%.
