Texas Teachers readies $750m for real estate funds and co-investments

Teacher Retirement System (TRS) of Texas last month approved $750m (€659m) worth of real estate fund and co-investment commitments with Lionstone Investments, Harrison Street Real Estate Partners and Brookfield Asset Management.

The $150bn pension fund said it will invest $100m in the Lionstone US Value-Add Five and commit a further $100m in co-investment capital.

It is also investing $150m in Harrison Street Real Estate Partners VII and committing $100m in co-investment capital.

And it has allocated $300m to co-invest alongside Brookfield Strategic Real Estate Partners III, a fund that it committed $300m to earlier this year.

Lionstone is seeking to raise $600m for its US value-add property fund, according to an SEC filing. The fund will mostly target office, retail and mixed-use assets. Lionstone declined to comment when contacted.

According to sources that track fundraising, Harrison Street is seeking to raise $1.3bn for Partners VII, which will focus on specialist real estate such as medical offices, self-storage, and student and senior housing.

Sources also disclosed that the Brookfield opportunity fund, which has already raised $12bn, has a $14bn hard cap.

As previously reported, New York State Teachers Retirement System, Pennsylvania Public School Employees’ Retirement System and State Universities Retirement System of Illinois have all backed the Brookfield fund.

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