Arizona State Retirement System intends to invest $2.7bn (€2.4bn) in real estate over next the four years to enable it to reach its 20% allocation target.

In a board meeting document, the $38bn US pension fund’s consultant RCLCO Real Estate Advisors said part of the plan would involve the selling of some existing non-strategic real estate assets.

In order to reach its allocation level by 2023, the pension fund will consider selling medical office buildings in Denver and retail properties in Miami as part of its plan to make capital available for opportunistic real estate investments.

Arizona State is likely to consider some develop-to-hold strategies as it believes the value upon completion will be in excess of the cost to build.

Some potential strategies will include investing in industrial and retail assets via a separate account