NORTH AMERICA - The New Jersey Division of Investment has approved a $350m (€270.5m) separate account to be managed by TPG Real Estate.
The pension fund is providing 96% of the capital for the separate account and will have the same ownership stake for any assets in it.
The partnership, which will invest in Europe and the US, has an 8% return hurdle rate.
It will invest in a range of real estate-related strategies focused on debt and equity transactions, including private platform, corporate control, public companies and some individual real estate assets.
In a board meeting document, the pension fund stated that corporate platform transactions were subject to less competitive bidding than single assets and offered more flexible financing and exit opportunities.
It also said the strategy would create some diversification within its real estate portfolio.
The TPG Real Estate strategy differs from the majority of funds within the pension fund's real estate portfolio.
These tend to be focused on investing in either single assets or portfolios of assets, either transacted directly or through an operating partner.
TPG Real Estate is responsible for sourcing deals for the separate account, although it has offered New Jersey the opportunity to review all investments made by the partnership prior to allocating capital.
New Jersey approved the separate account based on the recommendation of its real estate consultant, RV Kuhns and Associates.
TPG Real Estate was formed last year and since then has invested around $1bn of equity in five transactions.
One of these occurred earlier this year, with a $200m investment into Parkway Properties, a public REIT that owns office buildings in the Southeast of the US.