Teacher Retirement System of Texas has backed Faropoint’s latest US industrial real estate strategy with a $225m (€193m) commitment.
Faropoint said its Industrial Value Fund IV, which is targetting $1bn in capital commitments, and the fund’s sidecar secured the seed commitments from the pension fund.
The predecessor fund in the series, Fund III, raised $916m, including $29m in co-investments, surpassing its $750m target.
Faropoint said Fund IV intends to assemble a portfolio of 200 to 250 industrial assets. It will mainly target properties with suite sizes ranging from 20,000sqft to 40,000sqft, and overall property sizes between 20,000sqft and 100,000sqft.
Adir Levitas, CEO of Faropoint, said: “Fund IV represents our ongoing commitment to pairing local market expertise with cutting-edge technology to drive value while attempting to minimise downside risk.
“With access to over $30–40bn in deal flow annually through FarOS and market insight driven by REXy, we believe we are uniquely positioned to construct diversified portfolios that reflect secular urban logistics trends and dynamic tenant needs.”
Raz Rahamim, global head of capital development at Faropoint, said: “In today’s challenging fundraising environment, we’re genuinely humbled by the strong support we’ve received from both long-standing partners and new institutional investors.
“We believe this speaks not only to the compelling long-term fundamentals of urban logistics, but also to the trust placed in Faropoint’s disciplined and technology-driven approach to navigating a fragmented and operationally complex sector.”
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