The Teacher Retirement System of Texas is giving Greystar Real Estate Partners $200m (€167m) to invest in US apartments.
The pension fund told IPE Real Estate that it had formed Greystar TT as a limited partnership to invest opportunistically across the US
Greystar, which declined to comment, will buy existing value-added assets and invest in development projects.
Greystar has renovated more than 12,000 apartments around the country and its return on cost for these assets has been 26%, according to a board meeting document from the South Carolina Retirement System Investment Commission.
It is one of the largest apartment investors in the country, and is mostly known as a manager of commingled funds.
The most recent example is Greystar Equity Partners IX, which had been aiming to raise $1.5bn from investors.
The value-add fund is looking to invest in apartments that can produce gross returns between 15% and 17%.
