Invesco Real Estate’s fifth value-add real estate fund, which is looking to raise $1bn (€845m), has received capital from Teacher Retirement System (TRS) of Texas.

TRS Texas told IPE Real Assets that it had agreed to put $150m directly into Invesco US Value-Add Fund V.

The pension fund said it had also approved $50m into Invesco US Value-Add Sidecar V One, a co-investment vehicle.

According to sources that track real estate fundraising, Invesco is planning to raise $1bn and in October last year raised $215m at first close.

The previous Value Add Fund IV raised $759m in 2016.

The target returns for Fund V are 13% to 15% gross.

It will invest in US apartments, offices, industrial and retail assets that need recapitalisation, renovation and re-tenanting, as well as developments.