Florida State Board of Administration (SBA) is investing in value-add real estate debt, committing $75m (€67.4m) to Invesco Real Estate’s Strategic Opportunities III fund.

Florida SBA said it was backing the Strategic Opportunities fund series for the first time, citing its “existing relationship with the manager in other investments and the ability to opportunistically meet our pacing needs for the asset class”.

The $202bn pension fund said it was close to reaching its 10% target allocation to real estate.

Invesco is seeking to raise $500m for Strategic Opportunities III, which raised $205m at a first close in May last year.

The overall investment strategy for the fund is to invest in value-add office, industrial, hotels and residential real estate debt in the US and Europe.

The target net internal rate of return for the fund is in the range of 13% to 15%, according to sources.