Texas Municipal Retirement System (TMRS) has approved $350m (€330.6m) worth of new US real estate commitments.
The pension fund disclosed in a meeting document that it has approved $200m into the Abacus Core Income Fund I fund and $150m into the Pennybacker VI fund.
TMRS said the allocation to Core Income Fund I will be made by making a $100m commitment to the fund this year and another $100m commitment next year. TMRS is the sole investor in the core-plus multifamily real estate fund. The pension fund issued a $50m commitment to fund in 2020.
The Pennybacker Capital fund invests in a variety of value-added assets that can produce a net internal rate of return of 13% to 16%.
As previously reported, TMRS intends to invest up to $750m in real estate this year.
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