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Trust authorizes negotiations with TA Realty to add a second real estate manager
Summary
After a year‑long search, the investment committee recommended TA Realty as an additional core real‑estate manager to complement Heitman; trustees authorized contract negotiations and approved asset transition to TA Realty.
The Investment Committee's year‑long search for an additional core real estate manager concluded with a trustee vote Jan. 15 authorizing staff to begin contract negotiations with TA Realty and to execute transition documents upon successful negotiation.
Background and search process: Calhoun's presentation summarized a replacement search for the trust's core real estate sleeve after persistent underperformance by one existing manager (UBS Trammell Property). Cowen and the trust's real assets team screened 25 potential managers, eliminated 13 for reasons including size, sector concentration and team turnover, and produced a short list of four. After interviews and follow‑up, the committee interviewed three finalists (PGIM/Prudential, Principal Real Estate and TA Realty) and ultimately selected TA Realty as the top candidate pending contract negotiation.
Why TA Realty: Calhoun's materials show TA Realty's fund is younger than many peers but the firm has operated for more than four decades and holds significant experience across core and value strategies. The recommended fund is reported to be overweight residential and industrial and underweight office versus a 25‑manager core open‑end index, which the committee judged to be complementary to the current portfolio and advantageous given recent office market weakness.
Formal action: a motion was made to authorize the executive director and legal adviser to enter into contract negotiations with TA Realty, to authorize the chairman or executive director to sign related documents, and to approve the transition of assets to TA Realty upon successful contract negotiation. The motion was seconded by Renee and carried by voice vote; board members recorded 'Aye' and the motion carried.
Implementation and limits: trustees and staff emphasized the need to limit concentration with any single manager and to preserve diversification across sector and geography. The transition will proceed only after negotiated contract terms and will follow Cowen's recommended transition plan; the motion authorized staff-level execution once negotiations conclude.
Ending: With the board's authorization, staff will complete contract negotiations with TA Realty and present any executed documents or material changes to the investment committee and the full board as appropriate.
