GLOBAL - The Teacher Retirement System of Texas has made more than $800m (€650.5m) in real estate investment - a mixture of core, value-added and infrastructure strategies - in the last month.

The largest of the commitments was a $300m allocation to Zachary Hastings Infrastructure Partners, structured as a separate account with the pension fund and Zachary American Infrastructure.

US pension funds rarely employ separate accounts in the infrastructure sector, but Texas Teachers said it preferred the structure as it provided more control over the investment process.

The investment strategy for Infrastructure Partners will be to invest in growth and development infrastructure assets located primarily in the US.

Texas Teachers' second investment was a $250m commitment to Stratford Land Fund IV, a commingled fund managed by The Stratford Company.

The investment strategy is to acquire and manage a diversified portfolio of land holdings.

Stratford looks for assets in growth markets where there is likely to be job growth and population increases, in areas such as Texas, North Carolina, South Carolina, Georgia, Virginia, Florida, Colorado and Southern California.

Texas Teachers made a $150m investment in Stratford Land Fund III in 2007.

The pension fund's final investment was a $250m allocation to Lionstone Cash Flow Partners One, a separate account with Texas Teachers and Lionstone Group.

The investment strategy is to buy core office, industrial, retail and apartments throughout the US. 

According to Texas Teachers, transactions for the account will need to produce a 12% gross internal rate of return.
 

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