Oklahoma Teachers’ commits $135m to three noncore real estate funds

The $16.9 billion Oklahoma Teachers’ Retirement System has committed $135 million to three noncore real estate funds, according to Tom Spencer, executive director of the retirement system.

The three commitments include $35 million to FCP Realty Fund IV and $50 million each to Artemis Real Estate Partners Fund III and Harbert European Real Estate Fund V.

The first fund, FCP Realty Fund IV is managed by Federal Capital Partners. It is a real estate fund that will invest in properties in the eastern United States. It targets mainly multifamily, office, retail, industrial, manufactured housing and self-storage assets. The fund is seeking to raise $700 million.

The second fund, Artemis Real Estate Partners Fund III, managed by Artemis Real Estate Partners, is a value-add/opportunistic fund that will invest in the United States with a focus on the multifamily, office, industrial, retail, senior housing and self-storage sectors. The fund’s predecessor, Artemis Real Estate Partners Fund II, held a $580 million final close in 2014.

The third fund, Harbert European Real Estate Fund V, managed by Harbert Management Corp., is a value-added/opportunistic real estate fund. The fund invests in office, light industrial and warehouse, retail/mixed use, and residential properties.

Oklahoma Teachers’ Retirement System has a target allocation to real estate of 9 percent.