The Teacher Retirement System of Texas (Texas Teachers) has approved a second commitment that will invest capital into Brockton Capital Fund III fund.
The £33m ($47.5m) commitment was made into the manager’s Fund III Sidecar A entity.
The commitment comes after Texas Teachers initially made a £65m commitment to Fund III early last year.
The real estate manager is planning a final close this week on Fund III, according to industry sources.
The total capital raise will be approximately £800m for the fund and £75m for the sidecar, making it one of the largest capital raises for a UK-only fund.
About half of the capital for the fund came from US investors.
The new commitment from Texas Teachers will be used to participate as a co-investor along with the fund in certain transactions.
Fund III, an opportunistic fund, will acquire office, industrial, retail and residential assets.
Leverage will be 60% or less.
Brockton Capital has already invested about one-third of the fund’s capital, which has a further investment period of two and a half years.
Targeted returns are a 15% net IRR with a 1.5x net multiple on invested capital.
Texas Teachers also approved a new commitment to real estate in January – a $165m (€148m) allocation to a Blackstone Edison Managed Partners investment entity.
The investment has a limited partnership structure, with Texas Teachers the only institutional investor.
Capital will be invested in US opportunistic real estate, either with traditional or special property types.
