SEPTEMBER 24, 2014

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TMRS commits $308m to high-yield real estate

by Reg Clodfelter

The $23.5 billion Texas Municipal Retirement System has committed $308 million, divided between five managers, to value-add and opportunistic real estate.

Abacus Multifamily Fund III, managed by Abacus Capital Group, received $75 million from the retirement system to invest in opportunistic multifamily housing throughout the United States. The fund will specifically target investments averaging $20 million to $40 million in secondary markets such as Atlanta, Houston and Minneapolis, and that have more than 50 percent of total return coming from cash flow. Ground-up developments strategies will be pursued, but not more than 30 percent at the fund level.

The fund is targeting a $300 million haul by first quarter 2015 and is looking for a net return in the range of 13 percent to 15 percent.

TMRS committed £50 million ($82 million) to Moorfield Real Estate Fund III, a £250 million to £300 million ($4

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