Alaska Permanent Fund Corporation is investing $216.5m (€199.9m) for a share in two US office projects, the sovereign wealth fund disclosed in a board meeting document.

Alaska Permanent has approved a $141.5m equity investment in the 120 East Grand Avenue project in South San Francisco through a build-to-core life-science development partnership with Trammell Crow Company and has also invested $75m into Midway’s City Centre Six office development in Houston.

Industry experts view the sovereign wealth fund’s investment as a contrarian bet, as most pension and institutional investors in the US are scaling back their office asset holdings.

Alaska Permanent will hold a majority stake in the San Francisco property, while Trammell Crow will serve as the developer and manage day-to-day operations. Construction is expected to begin in the second half of the year, with no tenants currently signed on.

Dow Chemical is reported to be leasing 65% of the 320,000sqft City Centre Six office development.

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