The Teacher Retirement System of Texas has added to its relationship with PCCP for the first time in seven years with new real estate commitments totalling $200m (€176.3m).

The two commitments were $150m into PCCP Equity Fund VII and $50m into PCCP Clipper Venture I. 

PCCP declined to comment.

These two commitments were the only real estate investment approved in May, according to an email from the pension fund.

Texas Teachers sees the funds as value-added or opportunistic, with all of the capital being invested in the US.

PCCP is on its way to raising a significant portion of the capital for Equity Fund VII.

This will include the commitment from Texas Teachers and from another un-named public pension fund.

The targeted capital raise is $500m, with a $700m hard cap, according to industry sources familiar with the fund.

Limited partners are projected to achieve a net IRR in the mid-teens.

Most of the fund’s capital will be invested in the US gateway markets of Los Angeles, San Francisco, New York City and Boston.

Investments will include existing assets than can be improved and new developments in the office, industrial, retail and apartment sectors.

Equity Fund VII will invest in assets priced between $15m and $50m.

The relationship between Texas Teachers and PCCP dates back to 2008, when the pension fund made a $150m commitment into PCCP Mezzanine Recovery Partners II.