The Teacher Retirement System of Texas (TRS) has partnered with Parkway Properties on a $750 million real (€484 million) estate vehicle, Parkway Properties Office Fund II, to acquire high-quality office properties in the US.
The $110 billion Texas pension, based in Austin, will invest 70 percent of the fund while Parkway will invest 30 percent. The fund will be capitalized with approximately $375 million of equity capital and $375 million of debt. It will focus on office investments in major growth markets across the US.
Office REIT Parkway will provide asset and property management, as well as leasing and construction management services for the fund, which will have a lifespan of ten years.
Parkway Properties, which specializes in the operation, leasing, acquisition, and ownership of office properties, targets office markets in the southeastern and southwestern US and Chicago. It currently owns or has an interest in 69 office properties in 11 US states.