Texas Teachers commits $450m to real estate
The Teacher Retirement System of Texas has committed $450 million to three real estate funds.
The $132.4 billion pension fund has committed $200 million to CBRE Wood Partners Development Fund IV, $100 million to Principal Green Property Fund II and $150 million to Principal Green Property Fund Sidecar II.
CBRE Global Investors recently held a first close for Fund IV. The multifamily development fund has raised $204 million of its $400 million target. The fund is seeking a 16 percent return by developing, leasing up and selling apartment properties.
Texas TRS has previously committed to funds with CBREGI and Principal Real Estate Investors.
The pension fund has a 16 percent target allocation to real estate and a 12.1 percent actual allocation.