The Employees Retirement System of Texas (ERS) invested $150 million in two real estate funds in the month of July, the pension fund reported on Aug. 5.
ERS committed $100 million to the PAG Real Estate Partners II fund, managed by Pacific Alliance Group, and $50 million to Pennybacker Capital’s fifth real estate fund.
Launched in May 2018, the core and core-plus, value-add PAG fund is looking to raise $2.25 billion to invest in Asia and Australia assets. It has raised $1 billion to date.
The Pennybacker V fund is targeting $775 million to invest in a diversified commercial real estate portfolio, which includes CBD office, healthcare, hotel, logistics, mixed-use, and retail assets, among a variety of others. The fund is looking to invest in middle-market real estate across cities in the United States that have a highly-positive growth outlook, according to the firm.
ERS had an 11 percent allocation to real estate as of May 2019.
