Los Angeles County Employees Retirement Association, Pasadena, Calif., terminated Lend Lease as manager of $442 million in core real estate, said Gloria Gil, senior investment officer, real estate. The portfolio will be divided among the $24 billion systems other core real estate managers: RREEF, TA Associates and INVESCO Realty Advisors. Ms. Gil will make a recommendation at the May 21 board meeting on how the holdings should be split.
Lend Lease was terminated because of underperformance, senior manager turnover and the departure of portfolio manager Steve Walker, Ms. Gil said. The firm still manages a $250 million hotel portfolio for the system; that account remains on watch and is under review, she added.
"Were disappointed about LACERAs decision but appreciate the long relationship we have had with them and are pleased to retain the hotel portfolio, said Jonathan Miller, principal at Lend Lease.