The Teacher Retirement System of Texas bet on real estate ranging from North America multifamily properties to a UK shopping center at its December meeting.
The pension fund, which manages about $18.1 billion in real estate out of a $133.9 billion portfolio, made its first commitment to Abacus Capital Group, a New York-based multifamily developer and fund operator. TRS allocated $20 million to Abacus Multi-Family Partners III, a $300 million core-plus fund focusing on North America multifamily properties.
Other investors in Abacus’ third fund include the Texas Municipal Retirement System and Employees Retirement System of Texas, which allocated $75 million and $50 million, respectively, and Indiana Public Retirement System, which invested $50 million, according to PERE Research & Analytics.
TRS’ other commitments went to existing managers, including $180 million to the new senior housing fund of Akard Street Partners, an investment partnership that the pension system formed with Hunt Realty Investments in December 2009. TRS made a $320 million commitment to Akard Street’s 2010 general real estate fund, and wrote a $270 million check to the group’s industrial fund last year.
Finally, TRS doled out £133 million (€180.5 million, $194.5 million) to an AEW Global holding company. The entity purchased Festival Place, a 1.1 million square foot shopping center in the UK, for £290 million last month. Overall, TRS has invested in four AEW funds for a total of $495 million.
Since September 1, the pension plan has committed a total of $990 million to real estate funds and the AEW holding company.