Texas Permanent School Fund has approved $300m (€263m) worth of real estate commitments, half of which will target investment opportunities in Asia.
In a board meeting document, the $44bn pension fund said it had approved $75m commitments to KKR’s Asia Real Estate Partners, PAG’s Special Situations Fund III, Blackstone Real Estate Partners IX, and Rockpoint Group’s Real Estate Fund VI.
The KKR fund, the manager’s first Asia-only vehicle, will target assets that it can fix and sell, invest in special situations, such as distressed debt, and make platform investments.
According to StepStone, Texas Permanent’s real estate consultant, PAG is seeking total commitments of up to $1bn for Fund III.
The fund targets an annual net return of 15%. Fund III will target a mixture of either distressed or assets that might include some foreclosure situations.
The $3bn Rockpoint Real Estate Fund VI fund targets a 15% net annual yield return over the eight-year life of the fund. The fund will invest in US offices, apartments and hotels.
As previously reported, Blackstone’s latest global real estate fund is expected to raise $20bn.