Glasgow City Council, as administering authority to the Strathclyde Pension Fund, is seeking to appoint an investment manager, or managers, to manage a real estate debt mandate. Managers and proposed mandates will need to be able to comply with LGPS regulations. A segregated solution may be considered however, the manager must also have an appropriate pooled fund or funds for consideration

Glasgow City Council, as administering authority to the Strathclyde Pension Fund is seeking to appoint an investment manager to manage a real estate debt mandate. Managers and proposed mandates will need to be able to comply with LGPS regulations. A segregated solution may be considered however, the manager must also have an appropriate pooled fund or funds for consideration. The mandate will be focussed on a combination senior secured direct and whole loans, lending against commercial real estate in the UK and/or Europe. The overall portfolio would be viewed as equivalent to sub-investment grade credit risk. The strategy will primarily include senior debt on value-add properties and also can include whole loans on good quality assets, with potential for limited opportunistic allocations to mezzanine/junior debt. The expected returns on the mandate would be in the region of LIBOR plus 4-5 % p.a. net of fees and costs.

The mandate size will range between 200 000 000 GBP and 500 000 000 GBP depending on how it combines with other debt mandates. Glasgow City Council reserves the right to alter the value and coverage of the mandate both initially and over the period of the mandate.