The Alameda County Employees Retirement Association (ACERA) is increasing its allocation to real estate from 6% to 8%.

The US pension fund told IP Real Estate it would earmark approximately $98m (€87.5m) to invest in asset class.

ACERA’s real estate portfolio, valued at $454.5m in March, makes up 6.6% of its $6.9bn in total plan assets.

The moves reverses a decision in 2008, when it was advised by The Townsend Group to lower its target allocation for real estate from 9% to 6%.

The pension fund declined to provide a reason for the decision to now increase its allocation.

Its investment strategy for the new capital is unknown.

ACERA will work with its current real estate consultant, Callan Associates, on investing capital.

The consultant declined to comment.

Due to its size, the pension fund is likely to invest in funds.

The investor has in the past invested in a combination of open-ended and close-end funds.

The commitments have been to core and core-plus/value-add investments.

ACERA has previously used Pramerica Real Estate Investors (Prudential Real Estate Investors in the US) and JP Morgan Asset Management.