French civil service pension fund ERAFP is launching a call for tenders for three French residential property asset management mandates.

The €27bn pension fund aims to invest €200m in the residential market in the first three years.

ERAFP said it was continuing to develop and expand the real estate investment policy it started five years ago, in line with the board of directors’ strategic goals.

Standby mandates will be given to two of the three investment managers.

“ERAFP will require the mandate holder to create and manage a portfolio, investing a substantial portion of the assets in intermediate housing, while seeking to maximise returns,” the pension fund said.

“The funds not invested in intermediate housing should be directed towards private housing and alternative sectors, in particular senior housing and student housing.”

As well as this, the mandate holder would be responsible for creating ways to allow accommodation to be provided for civil servants, the pension fund said.

ERAFP was recently given the go-ahead to raise its real estate allocation to 12.5% from 10%.

The mandates will be for 10 years initially, with the option to renew them for a further two years.

In the first three years, around €200m will be invested via the mandates, although this could be revised up or down, ERAFP said.

“The investments must be made from a long-term perspective and must comply with the institution’s SRI framework,” it said.

Proposals must be submitted by 12 June 2017 at noon Paris time.