Approval of a Pool of Qualified Respondents to the RFQ for Real Estate Investment
Managers for the Permanent School Fund and Approval of
Investments in Real Estate Funds
July 22, 2011
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: ACTION
SUMMARY: This item provides an opportunity for the committee and board to approve a pool of qualified respondents to the RFQ for real estate investment managers for the Permanent School Fund and approval of investments in real estate funds.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §5(f).
PREVIOUS BOARD ACTION: At the April 2011 meeting, the board gave the approval to reopen the RFQ for real estate investment managers for the Permanent School Fund. At the January 2011 meeting the board approved an investment commitment of up to $50 million in Cornerstone Real Estate Fund VIII, L.P. and up to $75 million in L&B Core Income Partners, L.P. subject to continued due diligence and negotiation of fund terms.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: At the July 2006 meeting, the board set a strategic asset allocation which included a 6% allocation to real estate.
FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $1.9 billion during the 2012-2013 biennium.
PUBLIC AND STUDENT BENEFIT: The distribution of the Permanent School Fund will flow to the school districts and reduce the tax burden to the public and the state of Texas.
PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.
PUBLIC COMMENTS: None.
ALTERNATIVES: No alternative actions are proposed regarding this item.
OTHER COMMENTS AND RELATED ISSUES: None.
Respectfully submitted,
Robert Scott
Commissioner of Education
Staff Member Responsible:
Holland Timmins, Executive Administrator
and Chief Investment Officer of the
Texas Permanent School Fund