Alterra Property Group is close to achieving a $500m (€445.8m) fundraising target for its US industrial outdoor storage (IOS) fund, according to an investor.

Ventura County Employees’ Retirement Association (VCERA) disclosed in a meeting document that it has backed Alterra’s IOS Venture II fund with a $35m commitment.

According to VCERA, it made the commitment to replace a fellow US-based pension fund which had withdrawn its commitment to back the fund.

VCERA said Alterra has a $400m fundraising target for the value-add fund and a $500m hard cap.

The Venture II fund will target industrial outdoor storage assets worth between $5m to $15m that can produce 14% to 16% net returns.

Venture II’s value-creation plan includes marking rents to market, sale-leasebacks, build-to-suite and selective redevelopment.

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