Tennessee Consolidated Retirement System (TCRS) has made a $100m (€95m) commitment to the Principal Real Estate Investors-managed Principal Data Center Growth & Income Fund, according to the pension fund.
As previously reported the Principal Real Estate Investors-managed Growth & Income Fund is currently raising capital, but the target amount is still unknown.
The Growth & Income Fund focuses on investments in leased properties and new developments across the US, according to Tennessee. The fund’s portfolio includes both leased buildings and adjacent, entitled land suitable for future development.
Currently, 40% of the potential capacity is leased, with plans to expand through build-to-suit developments. The existing portfolio consists of six assets located in Chicago, Dallas, Phoenix and San Antonio.
The pension fund had paused real estate investments due to overallocation, with the asset class reaching 11.7% of total plan assets, exceeding the 10% target.
TCRS has previous experience investing in data centres through its real estate portfolio, beginning with a $100m commitment to the Principal Digital Real Estate Fund in November 2020.
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