The Teacher Retirement System of Texas has committed $865 million to several real estate funds that will invest in Europe, the U.S. and elsewhere around the globe.
Details from IPE Real Estate:
The US pension fund approved a $465m allocation to Westbrook Partners’ UWS Co-Investment 9 venture. The manager, which did not comment, will invest in special situation opportunities on a global basis.
Westbrook is active in the US, as well as London, Paris, Munich and Tokyo.
Texas also made respective $150m and $50m commitments to Square Mile Capital Management’s Credit Partners and Tactical Partners debt funds. Square Mile declined to comment.
Credit Partners, which will raise $750m, includes a $200m co-investment by the manager.
USAA Real Estate Company, which invested in Square Mile in 2012, is understood to be behind the manager’s commitment.
Credit Partners, which is targeting 10% to 12% gross IRRs, will provide new loans, including mezzanine debt on major property asset classes, avoiding land and single-family residential.
Around 85% of capital will be invested in the US, with the remainder in Europe.
Texas Teachers also approved a $200m commitment to Almanac Realty Investors’ Securities VII, investing $100m directly into the fund and $100m into a sidecar for the same fund for co-investments. The fund focuses on US REITs and real estate operating companies.
TRS Texas manages $124 billion in assets.