Texas Permanent School Fund is increasing its exposure to European real estate, in part through a new fund managed by Invesco Real Estate.
The pension fund is committing $75m (€60.7m) to Invesco Strategic Opportunities III, the latest fund to be launched by Invesco’s structured investments team, according to a Texas Permanent boarding meeting report.
According to the pension fund, Invesco is seeking to raise $500m for Strategic Opportunities III, which has been filed with the US Securities and Exchange Commission.
Invesco plans to invest half of the fund’s capital in Europe and half in the US, targeting equity, debt and hybrid value-add transactions.
The fund will aim to generate net returns of 13-15% and gross returns of 16-18%.
Texas Permanent has also approved a $75m commitment to Angelo Gordon & Company’s latest European real estate fund.
Angelo Gordon is seeking to raise $750m for AG European Realty Fund II, which is targeting net returns of 14-15% and gross returns of 18-20%.
As reported by IPE Real Assets, the fund has secured a $100m commitment from Pennsylvania Public School Employees’ Retirement System (PSERS).
Texas Permanent was advised by its real estate consultant Courtland Partners, which said that Europe today offers real estate investment opportunities that are comparable to those seen in the US following the global financial crisis.
Texas Permanent said it had also completed a co-investment in a portfolio of student housing assets in the UK. It is targeting a 15% net return on the investment.
