UNITED STATES/EUROPE - New York State Common Retirement Fund has made a $30m (€21.3m) commitment to the Mountgrange Real Estate Opportunity Fund I in a bid to further diversify into European real estate.

The money is part of €350m so far raised and of a potential €850m sought by Mountgrange Investment Management, on a fund which will carry 60% leverage.

Some of the assets are expected to be used to invest in underperforming UK properties, managed either as single properties or within portfolios.

New York Common made its commitment from a $300m allocation to the Lake Montauk Real Estate Fund which was formed in January of this year - the first investment funded by the Lake Montauk fund through more could follow.

Through Lake Montauk, NY Common is pursuing a fund of funds approach which should allow it to own parts of a wide variety of real estate rather than buying just a handful of larger investments.

New York Common created the Lake Montauk fund along with the assistance of real estate manager Franklin Templeton Real Estate Advisors.