Exeter Property Group has closed on capital commitments of $900m (€857m) for its Exeter Industrial Value Fund IV, according to a board meeting document from the New Mexico State Investment Council.

Another $375m of commitments are being processed, the pension fund said.

New Mexico State is one of a number of investors to commit to the fund which IPE Real Estate recently reported is oversubscribed.

The investor has been offered a minimum allocation of $42m by Exeter, although this could potentially go up to $62m.

Exeter will focus on the top 20 US industrial markets, with around 60% of the fund invested in big-box warehouses, 35% in last-mile properties and 5% in flexible space.

The strategy will involve 50% of renewing and re-leasing properties, and 25% in leasing empty space and 25% in development and re-development opportunities.

New Mexico State has invested with Exeter before, committing to two funds. The most recent investment, a $35m commitment to Exeter’s third fund, has so far generated 16.3% net return.

Vince Smith, deputy investment officer at New Mexico State, said: “We think that Exeter is a premier manager in the industrial space and they have proven this in the two investments we have made with them in the past.”

“A second factor is that we were under-allocated for industrial in our existing real estate portfolio.”

New Mexico’s investment with Exeter will form part of its $185m investment plan for its 2017-18 fiscal year, which is likely to include investments in more industrial strategies and those targeting the retail sector.

“I would think we have room for an additional investment into another industrial-only fund,” Smith said.

“We also will be considering investing some capital in retail-only funds as well.”