UNITED STATES - Teacher Retirement System of Texas has agreed to invest approximately £81m (€93.7m) or $125m into the UK-focused Brockton Capital Fund II.
Texas Teachers has so far invested in commingled funds with assets in Europe or pan-Asia, such as the $213.3m invested in Carlyle Europe Real Estate Partners III and $150m in Fudo Capital Fund II, but has yet to seek gains from UK real estate.
However, many US pension funds now believe the UK real estate markets rebounded sooner than and performing better than US property.
Brockton Capital is aiming to raise £500m via its value-added commingled fund through a combination of public and private pension fund investors as well as and insurance companies across the globe, and use those assets to buy and improve properties over time.
Brockton Capital is a very hands-on real estate manager and will be making all of the improvements to the properties itself rather than working with local operating partners.
It is anticipated the UK purchases will be made fairly quickly across all four main property types as well as buying healthcare real estate, pubs and student housing.
Brockton Capital first raised £150m through a fully-invested fund in 2006.