Public Employees Retirement Association of New Mexico has hired Rockpoint Group for the first time, committing $75m (€71.1m) to the Rockpoint Growth and Income Fund II.

Rockpoint declined to comment.

Kristin Varela, manager of real returns for the pension fund, said: “We think that this manager will make a strong addition as we continue to grow our portfolio in the core and core-plus sector.”

New Mexico PERA started to invest in core and core-plus real estate this year with a new $150m separate account with Sarofim Realty Advisors.

The pension fund is looking to invest an additional $225m into the market in 2017 and it could hire managers focused on single sectors or those investing across property types.

Rockpoint is hopeing to raise of $1.5bn for Growth and Income Fund II, targeting a gross internal rate of return of between 9% and 11%. Around 50% of the return is intended to be derived from income.

All of the capital for the fund will be invested in the US, with a focus on growth markets on the east and west coasts of the US.

Rockpoint will only be acquiring existing office buildings and apartments below replacement cost.

The manager will look to improve assets over time by leasing empty space and bringing existing rents to a market level.