UNITED STATES - Maryland State Retirement System has signed a deal to invest with a new manager to the fund, by committing $100m (€64.6m) to the Rockwood Capital Real Estate Partners VIII fund.

Officials say this investment delivers diversification on several fronts as it adds exposure to its value-added sub asset class, having already established a core real estate portfolio.

Maryland State still has a way to go before it reaches its targeted real estate allocation of 10% but had invested $2.48bn in real estate by the end of April - equal to 6.47% of its total plan assets - so the fund still seeking further opportunities.

That said, Maryland State believes the commitment with Rockwood Capital allows it to diversify by both manager and markets, and having never invested with them before it is also likely  the location of investments will be new to the pension fund.

Other investors to Rockwood's VIII commingled fund include Illinois Municipal Retirement Fund and New York State Teachers Retirement System.

The real estate manager will be only investing in the US but expects to place capital in existing assets of the four main property types - office, industrial, retail and residential .

Rockwood expects to improve the properties by adding value through renovation, repositioning or releasing.

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