The Employees Retirement System of Texas has approved a $65m (鈧�53m) commitment to Waterton Residential Property Venture XIII, according to the pension fund鈥檚 board meeting report.
Late last year, 91传媒在线 reported that residential specialist Waterton was seeking to raise up to $1bn for its latest US apartment fund.
Orange County Employees Retirement System (OCERS), which made a $100m commitment to the fund, said in its board meeting report that the real estate manager aims to use 65% leverage to achieve a total capitalisation of $2.1bn.
Waterton, which declined to comment, is targeting a net internal rate of return of 13% for the fund.
It will mostly make traditional value-added acquisitions, but a quarter of its activity is expected to involve debt investments.
Waterton plans to buy subordinated tranches of debt from Freddie Mac securitsations of multifamily mortgage loan pools.
