The $112 billion Teacher Retirement System of Texas is making moves into the European property market.
The Austin, Texas-based pension committed €200 million to private equity firm The Blackstone Group’s latest Europe-focused real estate fund, Blackstone Real Estate Partners Europe III, according to media reports. The pension could not be reached for comment by press time.
Blackstone’s latest European fund is expected to close in January next year. According to the Pennsylvania Public School Employees’ Retirement System, the vehicle has a hard cap of €3.5 billion and will make typical investments of between $15 million and $150 million in UK and Continental European properties.
The Texas pension has a 10 percent target to real estate, as well as a 10 percent target to private equity. As of August 2007, it had an actual allocation to alternatives of seven percent, with 1.1 percent in real estate, and 3.4 percent in private equity.