Kansas Public Employees Retirement System (PERS) has approved an additional $125m (€116.4m) to Morgan Stanley’s core open-ended US real estate fund.

Kansas PERS said it has committed the capital to the Morgan Stanley Prime Property Fund, a vehicle the pension fund has been investing in since 2004.

Kansas PERS valued its investment in the Prime Property Fund at $430m as of the end of last year. The Prime Property Fund’s net asset value was $26.7bn last year.

The Prime Property Fund produced a one-year time-weighted net return of 21.5% compared with the NFI-ODCE Proxy Median’s 21.4% return during the same period.

Prime Property Fund also beat out the ODCE returns for all the other time periods and including since inception.

The fund is over-allocated to industrial assets and has some exposure to non-traditional core property types including healthcare and self-storage assets. 

As previously reported, Kansas PERS expects to invest around $400m in core real estate this year.

The pension fund has so far this year made a $65m commitment to EQT Exeter Industrial Core-Plus Fund IV and invested $125m into the CBRE US Core Partners fund.

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