Employees Retirement System of Texas (Texas ERS) could expand its real estate strategy to invest in proptech.

The pension fund has proposed a change to allow it to invest in real estate-related venture capital, which could include technological innovations.

In a board meeting document, Texas ERS said such an approach could enhance traditional real estate returns and capitalise on disruptions to traditional landlord-tenant relationships.

The $29bn (€26bn) pension fund plans to make $650m of real estate investments in the next fiscal year, which starts in September.

It expects to invest in 12 non-core and up to two core strategies.

Texas ERS, which is advised by Meketa Investment Group, said certain non-core strategies could prove to be more recession-resistant than traditional core strategies.

They could include value-add and opportunistic strategies that involve developments and repositioning of existing assets.

Sectors could include student and workforce housing, medical office buildings, self-storage and manufactured housing.

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