CityView’s latest US multifamily real estate fund will be managed exclusively on behalf of the Los Angeles County Employees Retirment Association (LACERA).

CityView Multifamily Fund III was originally envisaged as $400m (€354m) pooled vehicle for multiple investors, but LACERA will now be the sole limited partner.

The pension fund confirmed to IPE Real Estate that it had approved a $150m commitment to the strategy under the new arrangement.

LACERA said it did not want to represent more than 25% of the fund if investing alongside other investors. This would have required CityView to raise a total of $600m, significantly more than its original $400m target.

CityView has also given LACERA greater control over the fund, including the option to acquire 100% interests in completed assets with a view to owning them for the long term.

The pension fund also has the power to control how much capital is drawn down by the manager. A board meeting document shows that CityView will be restricted to $75m in the first 12 months.

CityView, which did not comment, will build new apartments and renovate existing buildings. Most of the developments will be located in California, while renovations will take place in Seattle, Portland, Denver and Dallas.

The strategy is to provide rental housing for affordable and middle-income households, targeting net internal rates of return of between 13% and 15%.