Kansas Public Employees Retirement System (PERS) is redeeming $240.4m (€183m) from two open-ended UBS Realty Investors funds.

The pension fund said it has approved to fully redeem all of its $205.4m investment in the UBS Trumbull Property Fund and redeem half of the $70m it holds in the non-core UBS Trumbull Property Growth and Income Fund.

The pension fund invested in both funds in 2011.

Kansas PERS told IPE Real Assets that the UBS Trumbull Property Fund has been on probation for underperformance and the board “authorised a full redemption because the relative performance has not met our performance goals”.

The $20bn pension fund said reinvesting the capital will be “based on how quickly we move through the redemption queue and where we are with the real estate pacing plan at that time.”

According to people familiar with the matter, Kansas PERS has approved a full redemption from the UBS Trumbull Property Fund but has so far only requested a $50m redemption from the fund manager.

As previously reported, the Trumbull Property Fund’s $3.1bn exit queue had nearly doubled since June last year and the San Diego City Employees Retirement System was also planning to redeem its $34m investment from the $22.7bn vehicle due in part to underperformance and to rebalance its portfolio.

UBS declined a request for comment.