DivcoWest Properties has attracted $976m (€703m) of capital for its latest fund.

The investment manager raised $200m more than the original $750m target for its value-added Fund IV. Leveraged at 65%, total capitalisation for the fund is around $2.8bn.

DivcoWest, which declined to comment, has been backed by US public pension funds including the New York City Employees Retirement System, which committed $148m.

The California State Teachers Retirement System, Massachusetts Pension Reserves Investment Management Board and Oregon Public Employees Retirement Fund all committed $100m. The San Francisco City & County Employees Retirement System added $50m.

New Mexico State Investment Council had originally approved a $35m commitment for Fund IV in January but decided to pull out, citing an inability to reach final terms and conditions.

DivcoWest is investing $15m of its own capital in Fund IV, which has a 14% to 18% gross IRR with a 2x gross multiple.

The fund will mainly invest in US office and R&D properties requiring repositioning, redevelopments or new development.

With 90% of the portfolio in the US, the fund will target San Francisco, Southern California, Greater Boston and New York City. Europe or Canada may also be considered.