Calpers, the biggest U.S. public pension fund, is considering dumping asset manager BlackRock Inc (BLK.N) as its real estate consultant, the Wall Street Journal said, citing people familiar with the matter.

California Public Employees' Retirement System's investment of $500 million into Peter Cooper Village and Stuyvesant Town, an 11,000-apartment Manhattan housing complex, is widely considered worthless, the paper said, without identifying the sources.

The housing complex is owned by Tishman Speyer Props LLC and a unit of BlackRock.

The paper had reported earlier that the housing complex is on the verge of a loan default.

Calpers paid BlackRock $12.6 million in real estate advisory fees last year, the paper said.

The real-estate review began several months ago and could be completed as soon as year end, the paper said, citing people familiar with the process.

Brad Pacheco, a Calpers spokesman, told the paper the $200 billion pension fund wouldn't speculate on the future of our real-estate relationships until the review is complete.

BlackRock spokesman Brian Beades told Reuters his company does not comment on client activity. Calpers could not be immediately reached for comment outside of regular U.S. business hours.

The pension fund voted last week to reduce its exposure to fixed-income investments managed by AllianceBernstein Holding LP (AB.N) and PIMCO, but, at the same time, approved one-year contract extensions with the two money managers. (Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman) ((; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: