Texas Municipal backs Stockbridge fund, readies $400m for real estate

Texas Municipal Retirement System is investing in Stockbridge Capital Group’s latest fund, as part of plans to invest $400m (€375m) in real estate this year.

The pension fund is committing $50m to Stockbridge Value Fund III, according to a board meeting document, alongside a $50m investment in another fund, IC Berkeley Partners IV.

Stockbridge did not comment, but according to industry sources the real estate manager is targeting $400m to $500m for the fund.

It started fundraising in September of last year and expects to have a first close in the coming weeks.

Texas Municipal said Stockbridge had been a top-quartile performer. Its investment in Stockbridge’s 2012 fund has returned more than its capital base to date.

Its latest fund will target returns of 12% to 15%, gross of fees. 

Stockbridge plans to acquire existing office, industrial, retail and apartment assets in major markets, predominantly on the east and west coasts of the US.

It plans to invest in properties that are under-valued, under-used or not operating at full potential.

IC Berkeley Partners IV, in which Texas Municipal is also investing $50m, is a fund targeting light industrial assets in the US.

It will look at buildings leased to multiple tenants with around 120,000sqft in infill locations.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2575

    Asset class: Core Real Estate Muli-Manager Separate Managed Account.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-20.

  • QN-2578

    Asset class: Sovereign Local Currency Emerging Market Debt.
    Asset region: Local emerging markets.
    Size: EUR 950m.
    Closing date: 2019-12-19.

  • QN-2582

    Asset class: Emerging Market Corporate Debt Hard Currency Investment Grade.
    Asset region: Emerging Markets.
    Size: USD 40 – 60 m.
    Closing date: 2020-01-07.

Begin Your Search Now