Connecticut Retirement Plans and Trust Funds (CRPTF) is considering investing $100m (€87.7m) in the Artemis Real Estate Partners Income and Growth Fund.
According to a board meeting report from the pension fund, has raised $406m for the core-plus US real estate fund and is seeking to take this up to between $750m and $1bn.
Artemis is providing 1.5% of co-investment capital up to a maximum of $10m.
The fund will target a net return of 9-11%, with around 60% of return coming from cash flows.
Artemis has yet to make any transactions for the fund, but it aims to have 30-40% invested in office, 25-35% in multi-family, 15% in industrial and 10-15% in retail and hospitality. There will be limited exposure to self-storage.
There will be a focus on urban and infill suburban locations, and up to 80% of its investments are expected to be in gateway cities and metro areas, such as Seattle, San Francisco, Los Angeles, Boston and New York.
Around two-thirds of investments will be made through joint ventures with emerging and diverse operating partners.