Orchard Street Investment Management has won the mandate to manage £300m of the BBC pension fund’s £1.1bn real estate portfolio.
This element, which is part of the fund’s UK holdings, was previously managed by CBRE. The fund is believed to have made the switch because its long-term manager, CBRE’s Edward Luker, whom it regards highly, is stepping back.
CBRE Investors will continue to manage £400m of the fund’s UK and European holdings. The mandate takes Orchard Street’s assets under management to £3bn.
Last September, it won the mandate to manage St James Place’s £626m SJP UK Property Fund and the £184m SJP Authorised Property Unit Trust, formerly managed by Invista REIM.
In April it launched its second special situations fund with GIC Real Estate, the Government of Singapore Investment Corporation’s property investment arm, which will invest £200m in the UK.
With gearing of 65%, the ‘special situations’ fund will have the capacity to invest in up to £200m of UK assets with active management potential. This style of investment is a hallmark of Orchard Street, which was set up by six partners in 2004.