Texas Municipal Retirement System (TMRS) intends to invest between $200m and $400m (€343m) in real estate in 2018.

The pension fund said in a board meeting report that it had so far approved a $75m commitment to Abacus Capital Group’ Multi-Family Partners IV fund.

Abacus Capital, which declined to comment, is hoping to raise $500m for the fund, according to the report.

IPE Real Assets previously reported that New York State Teachers Retirement System has also allocated $75m to the fund, which focuses on converting value-add apartments into grade-A residential assets, avoiding major markets like San Francisco and New York City.

The fund is targeting an internal rate of return of at least 11%.

Residential makes up the largest single sector in the TMRS real estate portfolio, representing 32%, higher than the 24% weighting of the NFI ODCE Index.

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