New Mexico Educational Retirement Board has approved $70m (€54.9m) of new real estate commitments to senior housing and value-add funds.

The equal commitments of $35m to Prudential’s Senior Housing Fund V and Crow Holdings Capital’s VII fund were both follow-up commitments.

Mark Canavan, head of real assets for New Mexico Educational, said: “We have had good success with both of these managers in the past. It made sense to continue the relationship with them.”

Pramerica Real Estate Investors, the manager for Senior Housing Fund V, declined to comment.

The fund manager is looking to raise $500m for the fund, which is offering 10-14% IRRs.

The fund will target US assets, with as much as 20% of the fund to be invested in Canada.

Independent living, assisted living and memory care senior housing are on the fund’s radar, as are assets offering all three services.

The fund will make straight acquisitions, joint ventures, mezzanine debt and forward commitments on new development opportunities.

Private equity real estate firm Crow, the manager of Crow VII, is looking to take its fund up to $1.25bn.

The value-added fund will invest in existing US apartments, industrial assets and land for new development.

Assets in need of improvement, as well as developing new properties, are in focus.

New Mexico Educational, with a current targeted allocation for real estate of 7%, has around $50m of additional capital to invest in real estate this year.