On the go: LGPS Central, which has around £49bn in assets under management on behalf of eight Local Government Pension Scheme funds, has awarded a contract for property and investment management services.
A notice on the government’s Find a Tender procurement portal published on Tuesday revealed that the pension pool has appointed DTZ Investors to provide direct property and investment management services.
The original search notice, which was published in June 2021, explained that LGPS Central is launching a UK direct property sub-fund under a new authorised contractual scheme structure.
The fund is expected to launch with approximately £150m from three partner funds and is anticipated to grow in size to approximately £500m over seven years.
According to the notice, DTZ will manage, on an advisory basis, all the assets within the property fund in accordance with the investment objectives and policies of the pool, and provide day-to-day property related services such as rent reviews, lease renewals and dilapidations.
The pool may also call on DTZ to handle the existing UK direct property portfolios of its partner funds, with a view to winding down these legacy portfolios and reinvesting proceeds into the new property sub-fund.
The contract is for an initial seven years with the option to extend for a further three years. In total, three companies submitted bids for the contract.
This article originally appeared on MandateWire.com
