Texas teachers’ pension fund makes huge investment in international real estate

The $3B pension fund will invest over $500M with various real estate investment vehicles

TRD NATIONAL /
May.May 18, 2019 11:00 AM
Lone Star's John Grayken (Credit: Getty Images and iStock)

Lone Star’s John Grayken (Credit: Getty Images and iStock)

The Texas teachers’ retirement fund is betting big on the international real estate market.

The $3 billion Teacher Retirement System of Texas announced it will invest over $500 million with Dallas-based private equity firm Lone Star Funds, plus another $150 million for an infrastructure fund, according to IP&E Real Assets.

About $300 million will be invested into Lone Star’s Real Estate Partners VI fund, which is seeking $3 billion for property investments in Western Europe, North America and Asia. The pension fund will also invest $200 million into the firm’s Residential Mortgage Fund II, which will invest in the U.S. mortgage industry.

The pension fund will also invest about $10 million into CBRE’s French Logistics Feeder, another real estate investment vehicle. The pension fund last year committed over $100 million to the investment pool, according to IP&E.

On top of it’s real estate investments, the retirement system will inject $150 million into the Global Energy & Power Infrastructure Fund III.

American public pension funds have increased their real estate investments by a measure of six times between 2006 and 2016. [https://therealdeal.com/2018/11/26/public-pension-funds-looking-for-more-exposure-to-high-risk-real-estate/] The funds are now seeking riskier, more opportunistic real estate deals as a means of closing funding gaps.

Manhattan real estate has been a target of public pension funds, but the strategy has not been adopted by New York City’s retirement systems. Instead, the city invested $4 billion of its pension funds into climate change solutions. [IP&E Real Assets] — Joe Ward


Related Articles

arrow_forward_ios
CIM Group’s Shaul Kuba, Knotel's Amol Sarva, Related Group’s Jorge Pérez and The Agency’s Mauricio Umansky (Getty, Sarva by Sasha Maslov, iStock)

These real estate companies got fat PPP loans

These real estate companies got fat PPP loans
Federal Reserve Chairman Jerome Powell (Getty)

Real estate stocks benefit from second quarter rally

Real estate stocks benefit from second quarter rally
The Seagram Building at 375 Park Avenue with a photo illustration of RFR's Aby Rosen (Getty, Google, iStock)

Aby Rosen to build sprawling gym in Seagram Building

Aby Rosen to build sprawling gym in Seagram Building
Square Mile Capital’s Craig Solomon and Hackman Capital Partner's Michael Hackman with Silvercup Studios at 42-22 22nd Street in Long Island City (Hackman; AAK via Wikipedia Commons)

Hackman, Square Mile in talks to buy Silvercup Studios

Hackman, Square Mile in talks to buy Silvercup Studios
A photo illustration of Quora CEO Adam D'Angelo from a scene in the film The Matrix (Warner Bros./Village Roadshow Pictures; Quora)

“Our HQ will be in the cloud”: What if remote-first work is an opportunity, not a compromise?

“Our HQ will be in the cloud”: What if remote-first work is an opportunity, not a compromise?
From left: Onay Payne, Jim Simmons, Margaret Anadu and Tammy Jones (Payne by Emily Assiran)

‘Your pedigree is always questioned’: Black real estate execs push for change

‘Your pedigree is always questioned’: Black real estate execs push for change
McDonald’s on 220 West 42nd Street (Getty, iStock)

McDonald’s closes Times Square flagship

McDonald’s closes Times Square flagship
William Millichap

William Millichap of eponymous brokerage dies at 76

William Millichap of eponymous brokerage dies at 76
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...