Tennessee Consolidated Retirement System (TCRS) has replaced three of its six real estate separate account managers, the pension fund has told IPE Real Assets.

Clarion Partners, BlackRock and Barings Real Estate Advisers, which between them manage $1.3bn (€1.1bn) of real estate assets on behalf of TCRS, have been replaced by Heitman, AEW Capital Management and UBS Realty Investors.

Existing manager L&B Realty Advisors will also take over part of the $1.3bn portfolio.

L&B Realty Advisors and two other separate-account managers, JP Morgan Asset Management and DWS, are being retained.

TCRS employs separate account managers to invest in core real estate in the US, across office, retail, industrial and residential sectors.

It also invests in funds, usually for a non-core strategies, and has a total real estate portfolio valued at $4.1bn.

Real estate makes up 8.3% of the pension fund’s $50bn investment portfolio, currently below its target allocation of 10%.