The South Carolina Public Employee Benefit Authority has earmarked $900m (€724.3m) for potential separate-account mandates.
The $29.2bn pension fund has agreed separate-account relationships with TA Associates and Greystar Realty Partners, with a new $300m commitment made to the former.
South Carolina has an option to commit an additional $300m to the fund, which has a five-year investment period with two one-year extensions.
TA will co-invest 1%, or $3m, in the fund, which will focus on core, core-plus and value-add US office, industrial, retail and apartment properties.
South Carolina, which plans to have a build-to-core strategy with TA, has set a 20% limit on the committed capital for developments.
The return objective is to outperform the ODCE Index by 100-150 basis points.
South Carolina has also allocated an initial $150m to Greystar, according to a public document, with potential for an additional $150m during the fund’s initial term.
The US pension fund will own a 95% stake in the separate account, with Greystar holding the balance and co-investing 5% (around $8m).
Greystar, which has a build-to-core strategy, will invest in apartment projects in the Western, Central and Eastern regions of the US.
The investment manager is targeting a 10-year net equity IRR of at least 12%, which would include a 20% gross IRR during the development phase and 10% gross IRR in the investment phase.
South Carolina, which has a real estate portfolio valued at $1.1bn, has a targeted 5% allocation to real estate.
