California State Teachers Retirement System (CalSTRS) has committed $200m (€182.3m) to a global opportunity fund managed by The Fortress Group.

CalSTRS is investing in the manager’s FCO MA IV fund, according to a document from the pension fund.

The commitment gives CalSTRS a 47.96% stake in the fund, according to a pension fund document.

Target returns for the fund, which will invest in the US and western Europe, are above 13%.

CalSTRS said The Fortress Group has a good track record for opportunistic investments.

The strategy is to generate current income and long-term capital appreciation through investments in a broad range of distressed and undervalued credit and real estate investments.

The investment is part of $855m of new real estate commitments approved by CalSTRS, including a $115m investment in a 220,000 sqft office redevelopment in Santa Monica. The build-to-core investment was completed by Clarion Partners, which did not comment.

The value-added asset will be converted to core once built and stabilised, with a targeted return of between 9% to 12% after fees.

CalSTRS also made a $100m commitment to JP Morgan’s Special Situations Property Fund, a $2.7bn open-ended value-added investment fund investing in a variety of US properties.

The fund’s portfolio provides investment stage diversification, with both income-generating and non-core enhanced return components.

Other new commitments were a $140m acquisition of a Manhattan office building, a $150m commitment into Blackstone Real Estate Partners’ VIII fund, $100m into the BrookCal JV for residential housing and $50m into IHP Capital Partners’ VI fund, which invests in single-family projects.

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