Alaska Permanent Fund Corporation (APFC) has agreed its début, €280m deal in mainland Europe, investing in two shopping centres.
The US oil fund, represented by CBRE Global Investors, entered a joint venture on the centres in Spain and Portugal.
CBRE Global Investors, which advises APFC in the US, was awarded the Continental European separate account mandate by APFC in January this year.
Other core and core-plus investments could be added to the joint venture, APFC said.
Mike Burns, chief executive and executive director at APFC, said it would use the Immochan partnership to build out a portfolio across Europe.
APFC said it would take 50% of shares in the holding companies behind the two centres, in Alicante and Lisbon, from seller Immochan, the real-estate subsidiary of Groupe Auchan.
The group has been increasing control of its portfolio, buying out former Italian joint venture partner Simon Property in late 2011.
The Zenia Boulevard, a 83,000sqm regional shopping centre in Alicante and Alegro Alfragide, a 39,000sqm shopping centre in Lisbon, will continue to be managed by Immochan.
Immochan is looking to invest €1.7bn in 70 new shopping centres and extensions over the next three years.