Texas Teacher Retirement Parks $366M in Real Estate, Infrastructure

The $204 billion-managing Teacher Retirement System of Texas has allocated funds across three real estate strategies and one infrastructure fund, according to documents from a September 19 meeting of trustees.

In real estate, three new managers to the program were selected, including Core Atlanta Northside Fund; Cerberus Multi Listing Exit Fund and Waterloo Property Partners.

CSF Asset Management’s Core Atlanta Northside Fund saw a $54.5 million allocation to a U.S. value-added real estate strategy. The largest commitment of $150 million was to Cerberus Capital Management’s Cerberus Multi Listing Exit Fund, which is a core real estate holding. BRE’s Waterloo fund had approximately $97 million allocated to its European value add strategy.

Within infrastructure, a $65 million commitment was made to Global Infrastructure Partners‘ GIP Polaris Fund, a European focused infrastructure strategy.

Real return strategies, which encompass real estate, infrastructure, and natural resources, are performing exceptionally well, except for core real estate, which has experienced a negative return of -12.7% over the past year, according to consultant Aon.

The annualized return of the $29 billion real estate program was -5.5% at the conclusion of the second quarter. In terms of the pension fund’s objective allocation, the portfolio is just shy of 15%. The Energy Natural Resources and Infrastructure program totaled $14 billion and returned nearly 12% over the same period.