TA Realty is planning to raise $1.25bn (€1.1bn) for its latest value-add real estate fund, according to an investor’s meeting document.
The Public Employees’ Retirement System (PERS) of Mississippi disclosed in its meeting document that it has approved a $75m commitment to the TA Realty Value-Add Fund XIII fund.
PERS of Mississippi said the fund’s manager, TA Realty, will be issuing a co-investment of 1% of the fund’s total aggregate commitments.
The TA Realty team will contribute 20% of the co-investment with the remaining 80% coming from Rockefeller Group International, a subsidiary of TA Realty’s majority owner Mitsubishi Estate Co.
The US value-add fund will mainly target industrial and apartment assets with some limited exposure to office and retail assets.
Fund XIII expects a net internal rate of return of 10 to 12.5% and gross returns of 12.5%to 15%.
TA Realty declined a request for comment.
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