CBRE's Real Estate Finance team has been appointed by Teesside Pension Fund (the 'Fund') as Strategic Property Investment Advisor and Property Manager over its direct property investments with immediate effect following a competitive tender process. The Fund is managed by Middlesbrough Council and holds direct property investments valued at £107 million (127.7 mln.) (30 June 2011), equating to approximately 4% of its portfolio.
CBRE will advise the Fund's investment panel on the construction of its property portfolio on an advisory basis. This will include devising and executing an investment strategy to facilitate the planned expansion of the Fund's domestic real estate holdings over the next 3-5 years. Specifically, this will incorporate advising on purchases and sales, as well as the negotiation of rent reviews and lease extensions/renewals to ensure a strong platform for growth.
Following this appointment, the CBRE team now advises seven institutional real estate portfolios on their property investment strategies and implementation.
Tony Martin, Executive Director, CBRE Real Estate Finance, commented: "We are pleased to have won this mandate and look forward to working with Fred and the Teesside team. Our objective is to drive the performance of the direct property portfolio and increase their exposure to property over the next three years. We have grown our investment advisory mandates significantly over the last few years and now have broad spread of client types and instruction objectives."
Fred Green, head of investments, Teesside Pension Fund, added: "Our intention is to grow our real estate exposure over time and the appointment of CBRE Real Estate Finance, which has a strong strategic real estate advisory track record, will assist us in achieving this objective for the fund."
Source: FTI Consulting