Tennessee Consolidated Retirement System (TCRS) is investing $150m (€123m) in three US value-add real estate funds as it sells two assets from separate account portfolios, the pension fund told IPE Real Assets.
TCRS said it will put $50m each into the GreenOak US Fund III, Savanna Real Estate Fund IV and CBRE Strategic Partners US Value 8.
US Fund III invests in regional office, multi-family, retail and hotels, TCRS said. The fund targets a net internal rate of return of between 15% and 18%.
CBRE Global Investors plans to mostly invest in office buildings on a nationwide basis for its Value 8 fund.
IPE Real Assets reported last year that CBRE GI is close to raising $1.5bn for its eighth value-added real estate fund.
The commitments to Savanna and CBRE are both follow-on investments.
TCRS will sell a 183-unit Retreat at Tucson student housing property in Tucson, Arizona. The property was acquired for $61.9m in 2013 through its separate account manager Clarion Partners.
The pension fund is also selling a 215,000sqft Central Park Marketplace retail centre in Fredericksburg, Virginia.