Tennessee Consolidated Retirement System (TCRS) has approved a $200m (€177m) commitment each to an internally managed US real estate investment trust (REIT) portfolio and a Carlyle Group managed core-plus real estate fund.
The pension fund told IPE Real Assets that amount being committed to REITs will be placed into its $300m in-house domestic REIT strategy.
“Treasury has significant equity management and trading capabilities in house. The REIT strategy is a diversified strategy that resembles the US real estate market and is executed in an operationally and cost-efficient manner.”
The new commitment to the Carlyle fund will go to Carlyle Property Investors (CPI), a fund launched in September 2015.
“The staff and investment committee discussed the merits and risk associated with the investment, including the impact of the recent pandemic. After considering the risks, the outlook for this differentiated strategy remains attractive over the long term,” TCRS said.
As previously reported the CPI fund has a 45% exposure to apartments. The fund’s medical and manufactured housing assets represent 15% and 14.7% exposure respectively.
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