BP Pension Fund has appointed Hillier Parker to manage the bulk of its property portfolio. For the past 30 years the portfolio has been managed by DTZ Debenham Thorpe.
As part of its review of the provision of services, BP Pension Fund decided to put the position of property managing agent for the fund’s direct property investments out to tender.
Hillier Parker will manage most of the fund’s portfolio (valued at about £550m) while DTZ’s Manchester office will manage the Heywood Distribution Park, Manchester (valued at about £100m).
BP Pension Fund portfolio comprises two central London estates, located in Knightsbridge and around Berkeley Square, as well as industrial/distribution parks in the midlands and north west.
An in-house property team controls the assets with property management outsourced to managing agents.
DTZ’s head of investment Robert Peto admitted that it was not good news – BP was DTZ’s largest fund management client. But he pointed out that last month the firm won the contract to manage the £500m Guardian Properties portfolio. “We have a number of other irons in the fire which will emerge over the next few months,” he said.
Rupert Stanbury, who led Hiller Parker’s pitch, commented: “In recent years, we’ve been building up our central London resources and personnel. We’ve been building our fund and asset management and it’s this which has given us a high level of confidence to believe we could win this pitch.”
The present contract between the fund and DTZ expires later this year.
EGi News 21/05/98
