Texas Teachers Pension Invests $250 Million in Green Buildings


The Teachers Retirement System of Texas has committed $250 million to two funds that look to invest in “green” and LEED-certified buildings.

The two funds – both managed by Principal Real Estate Investors – will target apartment, retail and industrial buildings that have been designed and constructed using sustainable practices and materials.

From IPE Real Estate:

The US pension fund committed $100m to Principal’s Green Property Fund II and $150m to the manager’s Green Property Sidecar II fund.

The manager said it would seek existing properties with potential for improvement through value-add plans and opportunities to invest in new projects.

Targeted property types include office, industrial, retail and apartment assets.

The manager is looking to add LEED silver status to assets, as well as use e-commerce-friendly construction materials.

Principal will invest capital for Green Fund II in the top 25 US markets, targeting a 15-20% net IRR.

The Teacher Retirement System of Texas manages approximately $132 billion in assets.


Photo by penagate via Flickr CC

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