Within the Core Plus Trust offering, plan sponsors can predetermine custom investment parameters, including geographic regions, property types, investment amounts and investment periods. Additionally, the Core Plus Trust is unique in that the GM pension trusts take a significant position in each deal, investing side by side with participating clients, according to GMAM. The current equity value of GMAM’s real estate holdings is approximately $6.5 billion, of which approximately $3.5 billion is in Core Plus.
Core Plus includes properties which offer stable cash flow and the opportunity to improve performance through more proactive property management, according to the firm.
“Many employee benefit plans and other large investors are looking for ways to increase portfolio earnings and improve diversification and real estate is an important asset class that is commonly overlooked,” said Tom Dobrowski, managing director at GMAM in a statement.
The GMAM Group manages approximately $100 billion in pension, 401(k) plan and other assets, and includes three GM investment subsidiaries – General Motors Investment Management Corporation, an SEC-registered investment adviser; General Motors Trust Company, a New Hampshire chartered trust company that manages multi-manager commingled funds; and GM Asset Management (UK) Limited, an FSA-authorized investment adviser in the United Kingdom.