UNITED STATES - Teacher Retirement System of Texas approved $600m (€382.1m) of new real estate commitments in March to non-core real estate commingled funds.
The non-core sector has been the most affected by the economic downturn as less capital going is now moving into this space, but this has given Texas Teachers the chance to invest $225m inFive Arrows Realty Securities V, a well-known commingled fund from Rothschild, by applying $150m directly to the fund and setting $75m aside for co-investment opportunities.
Assets from the fund will be used to make entity-level investments in US public and private real estate companies but the only transaction so far completed is a $110m investment made in T. Wall Properties, an office building ownerand manager in the Madison, Wisconsin area. (See earlier IPE RealEstate story: Entity level investing attract more pension fund capital)
The pension fund also made two $100 commitments to the CB Richard Ellis Investors Strategic Partners US Value 5 andStrategic Partners US Opportunity 5 commingled funds.
Both of these offerings mainly invest in the four main property types ofoffice, industrial, retail and apartments via selected markets across the country.
At the same time, the final $175m commitment was placed with the Square Mile Partners III distressed debt commingled fund.
The fund's real estate consultant The Townsend Group assisted the process.