NORTH AMERICA – The Texas Municipal Retirement System has terminated contract negotiations with Mesa West Capital over a potential commingled fund investment.
The pension fund and real estate manager were unable to come to terms on the investor placing capital into the Mesa West Core Lending fund.
Texas Municipal approved a commitment of $100m (€75.8m) into the fund at the end of last year.
The US debt strategy aims to invest in existing core assets owned by real estate investors or fund the acquisition of new core properties.
Texas Municipal said it had not yet made a final decision of what it would do with the capital previously allocated to Mesa West.
It said the capital was likely to be allocated to another manager at its September board meeting.
The pension fund wrote in an email that it is in the process of conducting a real estate search, led by real estate consultant ORG Portfolio Management, as part of its 2013 pacing plan.
The pension fund is looking at core, value-add and opportunistic investment strategies in either the US or abroad.
Texas Municipal said in an email that it had not signed any documents in calendar year 2013 for real estate commitments.
The pension fund's 2013 real estate investment pacing plan called for a total of $600m in commitments.