Texas Municipal Retirement System, Austin, terminated Harrison Street Securities from a roughly $190 million real estate investment trust separate account, said Bill Wallace, spokesman for the $24 billion pension fund, in an e-mail.
Investment staff and real estate investment consultant Courtland Partners recommended the manager’s termination because of underperformance and changes in the organizational structure and investment process, said documents prepared for the pension fund board.
Mr. Wallace said funds will be reallocated to the real estate portfolio. Recently, the board approved $783 million total in new real estate commitments.
An official at Harrison Street Real Estate Capital declined comment.
Harrison Street Securities is a REIT subsidiary of real estate investment management firm Harrison Street Real Estate Capital.
The pension fund still has $150 million in a Harrison Street Real Estate Capital core property fund.