Scottish pension fund tendering CRE debt mandate

Scotland's Highland Council Pension Fund is seeking a whole loan strategy with preference given to UK-focused managers.

The Highland Council Pension Fund is tendering for a commercial real estate debt investment manager, according to a publicly issued tender notice. The LP is seeking a European-focused strategy and will give preference to a UK-only or UK-focused manager.

The decision by the Scottish local government pension fund to allocate 4 percent of its funds was first reported by I&P Real Estate.

The £55 million ($83 million; €71 million) mandate is designed to diversify the pension fund’s portfolio as well as reap attractive returns.

The decision to realign the investment allocation was taken last year, a source familiar with the fund’s plans told PDI, and is the only change expected this year.

The pension fund is seeking a pooled fund product that invests only or primarily in whole loans, though mezzanine debt will also be considered, the tender document outlines.

Highland Council Pension Fund’s commercial real estate mandate excludes investments in peripheral and Eastern Europe.