The New Mexico State Investment Council is planning to issue commitments of at least $190m (€179.3m) in real estate in 2017.
The sovereign wealth fund has the potential to invest more capital, with flexibility depending on opportunities that the investor finds attractive in the market.
New Mexico State works on its real estate portfolio along with assistance from its real estate consultant, the Townsend Group.
New Mexico is planning to invest through funds, as it lacks the size to consider separate-account relationships.
The investment strategy for 2017 calls for all capital to be invested in strategic or non-core real estate.
Vince Smith, deputy investment officer at New Mexico, said: “When we first started our real estate investment expansion a few years ago, we filled out our core exposure first.
“Now we are looking at investing the capital into value-add real estate, which should produce some attractive investment opportunities.”
The one investment already approved this year was a $75m commitment into Asana Partners Fund I.
While actually approved in 2017, New Mexico funded the capital for this investment from its 2016 allocation.
Three or four commitments could be planned for 2017 in the range of $75m-100m.
New Mexico will be considering US or international investments, either on single property types or funds that buy into diversified asset types.