Tennessee Consolidated Retirement System (TCRS) has expanded its real estate portfolio to include single-family rental properties.
TCRS said it has approved a $125m (鈧�102.9m) commitment to Pretium Single-Family Rental Fund III, an investment which represents the pension fund鈥檚 debut investment in a fund dedicated to the property type.
The open-ended US core-plus fund managed, by Pretium Partners, targets a 9% to 11% net internal rate of return and an 11% to 14% gross return.
TCRS told 91传媒在线 that strong 鈥渄emographic tailwinds due to the ageing of the millennial generation, who still have significant student loan debt and enjoy the flexibility of renting versus buying make this property type attractive鈥�.
The fund will be investing in key growth markets across the US southeast and southwest regions
Pretium Partners declined a request for comment.
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