Texas ERS Hunts for Real Estate Consultant
July 9, 2008
The Employees Retirement System of Texas (ERS) is aiming to bring a consultant on board to assist with the development of a long-term real estate investment strategy, said Mary Jane Wardlow, spokeswoman for the fund.
She explained that the search evolved from the decision invest in the asset class two years ago (See IMW, 12/18/06). At that time the ERS board decided to add a 15% allocation to real estate and private equity, with 7% going to real estate. The board has since hired Altius Associates as its private equity consultant (See IMW, 6/4/07).
The real estate consultant would assist with the development of an investment policy and annual implementation plans, as well as program development, identification of investment opportunities, due diligence, and general assistance in the management of the ERS' real estate portfolio.
According to the RFQ issued, the $23.8 billion plan is short of its real estate target, with roughly 2% invested thus far.
Wardlow noted that the board’s initial plans were to manage the real estate allocation in-house, but has since restructured its investment operations. She also said that the plan is currently undergoing an asset allocation study, which should be wrapped up by the end of the year. The findings of the study could have an effect on the size of the allocation or how the plan invests in real estate.
The RFQ is available at the ERS' Web site, at http://www.ers.state.tx.us/htdocs/vendorbid/proposals/current.aspx. Responses are due Aug. 31.
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