Exeter Property Group has begun raising capital for a new core industrial fund and has already attracted interest from the Tennessee Consolidated Retirement System (TCRS).
According to sources familiar with the fund, the manager expects to raise between $750m (€658.9m) and $1bn for Exeter Core Industrial Club Fund III.
TCRS told IPE Real Assets that it has made a $100m commitment into the core industrial fund.
In the past couple of year, the pension fund has invested in core real estate through its separate account managers. Most of its commitments made via funds have been placed into non-core funds.
The Exeter Core Industrial Club Fund III will be buying existing core assets that are located in the major and top US industrial markets.
Exeter did not respond to a request for comment.
According to an industry source, industrial property is being favoured by many pension funds and other institutional investors in the US over the next couple of years.
The asset class has been a strong performer through e-commerce growth and one not overbuilt in the current market cycle.