The Texas County & District Retirement System (TCDRS) has approved a commitment to GEM Realty Capital’s latest value-added real estate fund. According to its website, the $19.7 billion pension system has authorized a $50 million contribution to GEM Realty Fund V.
The contribution to Fund V fits with TCDRS’ strategy of investing in distressed funds. Last year, the retirement system committed $40 million to Blackstone Real Estate Partners VII and $50 million to Rockpoint Real Estate Fund IV. TCDRS also contributed €40 million to Orion European Real Estate Fund IV in December.
As PERE previously reported, GEM Realty is looking to invest in a range of properties and distressed debt in the US through Fund V, for which it is targeting $750 million in commitments. The Chicago-based fund manager is seeking contributions from endowments, foundations, pension plans and insurance companies. Previous investors include TIAA-CREF, the Montana Board of Investments and the University of Texas Investment Management.
The previous fund in the series, GEM Realty Fund IV, closed on $550 million in equity in 2010, according to PERE Research & Analytics. GEM Realty is believed to be wrapping up the investment phase of that fund, which is said to have a similar strategy to its new fund. Meanwhile, GEM Realty Fund III, which invested in properties as well as operating companies, closed on $360 million in 2006.