Texas Pension Re-Ups Real Estate Play

LaSalle Investment Management won a $200 million mandate from the Texas Teachers' pension fund, matching an earlier investment allocated to real estate around the world.

(May 26, 2011) — The $108 billion Teacher Retirement System of Texas (TRS) has awarded LaSalle Investment Management a second $200 million mandate to invest in property around the world.

The partnership between LaSalle and the Teacher Retirement System of Texas was formed in 2009 with an initial $200 million of equity.

Dan Witte, Managing Director at LaSalle Investment Management, commented in a statement: “We have fully committed the first $200 million in co-investments alongside five different general partners of TRS over the last two years, and we are very pleased with this additional commitment. We believe it speaks to the success of the program, which we look forward to continuing with TRS.”

LaSalle said that with the second $200 million equity allocation, it will continue to pursue real estate opportunities across all property types, risk profiles, capital structures, and geographies.

The business will focus on opportunities presented to it by the pension fund’s investment management partners. However, it may additionally seek to invest a portion of the money with other partners. LaSalle stated: “Specifically, the fund will invest in real estate co-investment opportunities presented to LaSalle by TRS’s real estate general partners (“GPs”) who specialize in such investments. The fund will focus on existing relationships within TRS’s stable of GP fund managers, although LaSalle will also consider investing a portion of the capital into co-investment opportunities with GPs in which TRS does not yet have an existing relationship.”

To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742