Texas TRS pours $250m in Oak Street, Principal real estate funds

The Teacher Retirement System (TRS) of Texas has committed $250 million to two real estate funds managed by Oak Street Real Estate Capital and Principal Asset Management, according to a recent investment report.

The lion’s share of capital — $200 million — went to Oak Street Real Estate Capital Fund VI, a value-add fund focused on single-tenant, triple-net lease assets throughout the United States. It opened to investors in June 2022 and has a fundraising target of $4 billion, according to the IREI.Q database.

The remaining $50 million was invested in Principal Green Property Fund III, a value-added and opportunistic fund focused on investing in properties in the United States.

Both managers had existing relationships with the pension fund.