Teacher Retirement System (TRS) of Texas is investing $450m (€384m) in US real estate through a hotel-focused strategy managed by MSD Real Estate Management and a net-lease property fund managed by Blue Owl Capital.

The $209.5bn US public pension plan has committed $200m to the MSD Hospitality Partners relationship as part of a value-add investment strategy.

MSD Real Estate is known for hotel investments in various US locations, including Dallas, Hawaii, Colorado, Southern California and Florida. A significant portion of these activities has been within the luxury sector.

TRS of Texas made a $250m commitment to Blue Owl Real Estate Fund VII, a fund that mainly targets industrial properties, with some investments also including office and retail properties.

The pension fund classifies the Blue Owl fund as a special situations investment fund.

As previously reported, Blue Owl Capital is planning to raise $6.5bn for its latest net-lease fund.

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