Investors Diversified Realty (IDR) has raised more than $1bn (€882m) for a fund of funds that will track an index of core real estate funds in the US.

The Core Property Index Fund will invest in 21 of the top 25 funds that constitute the $248bn NFI-ODCE index and has attracted a $250m investment from the Los Angeles County Employees Retirement Association (LACERA).

A board meeting report from the pension fund suggests that the fund of funds has attracted more than $1bn of investment, includling a $950m commitment from an unnamed pension fund.

According to a separate board meeting report, the Teacher Retirement System of Texas approved a resolution to invest up to $990m in the vehicle last year.

LACERA said another public pension fund had invested $50m and a wealth manager had committed $10m.

The Core Property Fund Index is thought to be the first of its kind and will be managed by IDR Investment Management, according to LACERA.

IDR plans to eventually raise up to $5bn for the fund of funds.

LACERA will initially invest $100m before increasing the commitment as it looks to sell more than $1bn of assets from a separate account.

The pension fund plans to make additional investments in ODCE funds when it expects certain funds to outperform.

The four top-25 funds excluded from the Core Property Index Fund are Madison Core Property Fund, L&B Core Income Partners, US Real Property Income Fund and GRE US Property Fund.