Texas TRS commits $550m to LaSalle medical fund and Lone Star debt fund

The $154 billion Teacher Retirement System of Texas has committed a total of $550 million to two real estate funds; one is an opportunistic fund and the other is a core fund, according to Rob Maxwell, investments communications specialist at the pension fund.

The first commitment was $300 million to Lone Star Fund XI, managed by Lone Star Funds. The opportunistic fund will invest in distressed debt secured by properties in the United States, Europe and Japan. According to a filing with the SEC, the fund is seeking to raise $6 billion in equity.

The second commitment was $250 million to LaSalle Medical Office Fund III, managed by LaSalle Investment Management. The firm’s medical closed-end fund series has a core/core-plus investment strategy and invests in medical office properties throughout the United States. The series targets single-tenant buildings leased to leading hospitals and healthcare systems, and multi-tenant buildings with a synergistic mix of practice groups, ancillary service providers and hospital tenants.

Texas TRS has a target allocation to real estate of 14 percent with an actual allocation of 11.86 percent.