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.