The Kansas Public Employees Retirement System (Kansas PERS) is to invest as much as $325m (€307m) in real estate during the 2016 calendar year, according to a board meeting document.
The investor is planning to split commitments.
As much as $150m will placed into core investments and $175m in non-core investments through funds.
The investment in core assets will be funded through the pension fund’s targeted real estate allocation and the continued sale of separate account assets Kansas PERS holds through a relationship with AEW Capital Management.
Kansas PERS is looking to make fund investments in the range of $50m to $65m.
Capital could be invested in funds investing in the US and Europe.
New allocations to core are likely to be made by increasing current positions with existing core, open-ended fund managers.
The only exception to this would be with PRISA, to which the pension fund made a $175m commitment in September.
The other funds are the JP Morgan Strategic Property Fund, Morgan Stanley Prime Property Fund, LaSalle Property Fund, Heitman America Real Estate Trust, UMS Trumbull Property Fund and Jamestown Premiere Property Fund.
The pension fund placed a $837.5m market value on the investments, which have produced a 10.8% overall net IRR.