Texas Municipal Retirement Fund (TMRF) is increasing its investment in the debut real estate fund of Stonepeak.
The US pension fund invested $150m (€143m) in Stonepeak Real Estate Partners earlier this year and now has approved a $100m commitment to a co-investment vehicle, according to a board meeting report.
Stonepeak Real Estate Partners Master Co-Investment Partners will co-invest alongside the fund, targets value-add assets in the industrial, residential, healthcare and technology sectors.
TMRF is making the investment – and targeting $500m of new real estate investments in 2023 – despite being over-allocated to real estate.
The real estate portfolio currently makes up 13.5% of total assets, 1.5 percentage points above its target allocation of 12%.
However, redemptions from core open-ended property funds are expected to reduce its allocation.
The pension fund is also reducing the real estate portfolio’s weighting to core assets from 50% to 40%, allowing for greater allocations to non-core real estate.