Oregon Public Employees Retirement Fund (PERF) has set up a joint venture with LBA Realty as its seeks to invest up to $650m (€591m) of fresh capital into industrial real estate.

The pension fund, which has been considering different ways to increase its industrial exposure, said it will invest $250m in LBA Logistics Joint Venture, which will be managed by LBA Realty.

The partnership will focus on buying existing core assets but will able be to consider developments, targeting gross returns of 7% to 9%.

It is the first time that Oregon PERF has invested with LBA Realty.

Tony Breault, senior real estate investment officer for Oregon State Treasury, said: “We have been following LBA for the past seven years and seen the successes they have had and view them as a strong addition to our portfolio.”

Oregon PERF also said it plans to commit between $300m and $400m to an existing $780m joint venture with Lincoln Property Company, either later this year or in 2020.