Teachers’ Retirement System of the State of Kentucky has approved two real estate commitments totalling $150m (€129.6m), according to the pension fund’s board meeting document.
The pension fund approved a $75m commitment to the TPG AG Realty Value Fund XII fund, comprising $65m from its Retirement Annuity Trust and $10m from the Health Insurance Trust. It also made a $75m commitment to Ares Real Estate Secondaries X.
The TPG fund targets global real estate with a primary focus on the US, alongside smaller allocations to Europe and Asia. The fund aims for net returns of 12% to 14% and 16% to 18% gross by investing in residential, industrial and specialty sectors, including senior and student housing, medical offices and self-storage. The fund has the flexibility to pursue other opportunistic deals.
TPG declined a request for comment.
Ares Management is seeking to raise $4bn for its secondaries fund dedicated to acquiring minority limited partner positions in US-focused value-add and opportunistic real estate vehicles.
Kentucky Teachers has also added to its infrastructure portfolio with a $60m commitment to the NGP Sustainable Real Assets II fund.
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