The $12.3 billion pension plan wanted to reduce its number of core real estate managers to two from three; Mr. Chattergy said all three managers have performed well. The $120 million managed by LaSalle will be moved to the other core managers, Heitman and Invesco. The transition should be completed by the end of September.
Real estate consultant Courtland Partners recommended the move.
The pension plan has about $700 million invested in core real estate, all in separate accounts. LaSalle will continue to manage about $36 million for the system in its Income and Growth Fund V, a valued-added real estate fund.