A new $500m (€406m) US residential fund set up by FPA Multifamily has received $100m from Texas County & District Retirement System (TCDRS).

The pension fund said on its website it had approved the amount – its first commitment for 2018 – to FPA Core Plus Fund IV.

FPA Multifamily, currently fundraising, declined to comment.

The fund is expected to buy existing assets that have strong current income with the possibility to add value in the future.

The manager has a history of investing in markets in Seattle, California, Arizona, Colorado, Texas and Georgia.

It is currently investing on behalf of Core Plus Fund III, which was set up to acquire $900m of assets.

TCDRS had $590m invested in private real estate at the end of 2017, making up 2% of its $29.7bn in total assets – well below its a 6% target allocation.

The pension fund also invests in public real estate investment trusts. This portfolio is valued at $681m or 2.3% of total assets – above its 2% target.

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