Heitman LLC, which has over $31 billion in assets, has been appointed by Advance AM to manage the mandate.
The long-only mandate invests in a concentrated portfolio of Asia-Pacific, North American and European global real estate securities, according to a statement by Heitman released today.
The mandate allows Heitman to invest in up to 25 per cent of the FTSE EPRA/NAREIT Developed index, which is currently less than 80 stocks.
Heitman Gobal Real Estate Securities senior managing director Kathy Sandstrom said the mandate win was a "wonderful acknowledgement" of the investment team's work.
"We look forward to building a long and lasting relationship with Advance," she said.
Heitman’s Asia-Pacific Public Real Estate Securities director and head John White said investor demand for real estate is continuing to grow around the world.
"Even in this period of irregular economic growth, occupier demand is showing improvement and new construction is still limited in most markets," Mr White said.
"Asset classes such as listed real estate, which offer investors an attractive yield, supported in most cases by stocks which are trading at a discount to their tangible asset backing, offer a compelling return outlook," he said.
"Through allocating a considerable amount of capital to listed real estate, we believe that Advance is making a strategic move to enhance exposure to opportunities from the current and long-term expected market conditions for listed property."
