Cabot Properties has fallen short of a $750m (€672m) target raise for its first core real estate fund.

The US-focused Cabot Core Industrial Fund attracted $443m.

Cabot had originally intended to raise $750m for the fund, according to a board meeting document from one of its investors.

The fund is the manager’s first core fund, having previously pursued value-add investment strategies.

Cabot has in the past bought core industrial assets on a separate account basis for institutional investors.

The Pennsylvania Public School Employees’ Retirement System is a lead investor in the fund with a $150m commitment.

Cabot will invest for the fund over three years from its final closing.

Only existing properties will be acquired and many are expected to be fully leased.

Cabot typically targets properties that are 10 to 15 years’ old with leases that have no less than three years left to run.

With 40% leverage, the fund will have a total $738m capitalisation.

Targeted net returns will be net 8% to 10%, with anticipated current yields of 5% to 6%. Around 70% to 80% of the return will come from current income.

Cabot has already invested $225m in nine transactions for the fund.

The assets are in South Florida, Houston, Atlanta, Chicago, Dallas, Los Angeles and Eastern Pennsylvania.