Florida State Board of Administration (SBA) invested $333.2m (€311.2m) in medical properties as part of its $530m real estate commitments in the third quarter of the year.

The pension fund said it is investing in the medical properties through Montecito III, a core US real estate joint venture relationship managed by Heitman Capital Management with Montecito Medical as an operating partner.

Medical office buildings are outperforming traditional office buildings in many markets, according to industry trackers. This is likely due to several factors, including the fact that medical office tenants tend to stay in their buildings for longer periods of time and need to come into the office, unlike tenants of traditional office buildings who have the option to work from home.

Florida SBA said during the period it also invested $104.9m to acquire a cold storage property in Stuart, Florida, and placed a $45m co-investment commitment into the Heitman Red Arrow fund, without disclosing further details of the fund.

The pension fund also made a $48.4m credit facility loan in a deal represented by L&B Realty Advisors as a consultant on the investment. The manager of this relationship is SitusAMC.

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