NORTH AMERICA – The Teacher Retirement System of Texas has approved $400m (€296m) of new real estate commitments during the month of September.
One of the new commitments is a $100m allocation into the Retail Co-Invest Holdings 3 commingled fund, managed by Starwood Capital Group.
The fund buys retail assets in the US, looking for properties that have a value-added component, including renovation, development and redevelopment strategies.
Earlier this year, the pension fund made a $200m commitment into the Starwood Distressed Opportunity Fund IX.
And in 2012, Texas Teachers invested $200m into Starwood Real Estate Securities.
The other commitment was a $300m allocation to Lone Star Real Estate Fund III, an opportunistic commingled fund that will invest in Europe, the US and Asia.
Lone Star is still raising capital for Fund III.
The anticipated total capital raise is $6bn.
The targeted return for the limited partners is a 25% gross IRR.
The investment strategy will involve investing in both commercial property types and apartments.
Texas Teachers made a $300m commitment to Lone Star Real Estate Fund II in January 2011.