Teacher Retirement System of Texas has made a $300m (€257.6m) commitment to a distressed global real estate fund managed by Starwood Capital.
The pension fund in July committed the capital to Starwood Distressed Opportunity Fund XIII Global, a fund that will mainly invest in North America and Europe, with a limited number of potential transactions in Asia.
According to an SEC filing from April, Starwood Capital had raised $5.1bn in total commitments for Fund XIII, which expects to reach $10bn.
Fund XIII expects to generate a net internal rate of return of 14% to 16% by employing 60% leverage as it targets assets like residential, data centres, hotels and life science/traditional office assets.
Texas Teachers said it also approved a $75m commitment to DB Yogi Co-Invest, a DBP Fund Adviser-managed European opportunistic real estate strategy; and placed $75m into DivCore Fund VII, a value-add US real estate fund managed by DivcoWest.
DivCore Fund VII is seeking to raise $1.5bn to invest in office, industrial, residential and data center assets.
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