Texas County & District Retirement System is investing $100m (€82.7m) in an Asian real estate debt fund.

According to its website, the pension fund has approved the commitment to BPEA Real Estate Fund II, managed by Hong Kong-based Baring Private Equity Asia.

The fund is expected to raise $750m, having secured $488m in a first close in December, according to sources that track capital raising.

The fund will invest in value-added and opportunistic debt opportunities in China, Hong Kong, Japan, South Korea, Singapore, the Philippines and Australia.

Texas County & District has also approved a $50m commitment to Starwood’s Global Opportunity Fund XI. IPE Real Assets reported in March last year that the real estate fund was close to reaching its $4bn target.

Starwood will be invest in distressed debt, value-add acquisitions and corporate transactions in the US and Europe, targeting gross returns of between 17% and 20%.