Los Angeles Fire and Police Pensions (LAFPP) is planning to hire a new manager for its investments in real estate investment trusts (REITs).

The US pension fund could allocate as much as $160m (€151m), according to a board meeting document.

LAFPP has two existing REIT managers: Principal Real Estate Investors and AllianceBernstein, which manage accounts valued at $335m and $110m, respectively.

Last year, the pension fund extended its contract with Principal for three years, despite underperformance in the first half of 2016.

According to industry sources, it expected that some of the capital in Principal’s account will be transferred to the new manager.

Investment consultant RVK will help manage the search and will evaluate 27 managers from the eVestment database.

LAFPP hopes to arrive at a short list of 10 to 12 managers before inviting a final three for interviews. 

The pension fund is also searching for a manager for a direct real estate separate account, although the value of the account was not disclosed.

The Townsend Group is advising on the search.

LAFPP has two existing separate account managers: Heitman and Sentinel Real Estate Corporation.

Combined, they manage a portfolio of 15 US properties with a gross asset value of $729m.