KKR is planning to raise $3bn (€2.5bn) for its latest non-core Americas real estate fund, according to a potential investor.

The New Mexico State Investment Council (SIC), which plans to invest $300m (€248m) in non-core real estate the fiscal 2021 year which started on 1 July, said in a meeting document that it is considering to make a $75m commitment to the KKR Real Estate Partners Americas (REPA) III fund.

The predecessor REPA II fund, a $2bn fund dedicated to value-add and opportunistic real estate investments primarily in the US closed in January 2018.

According to New Mexico SIC, the latest fund could have up to 15% of its investment be placed into public security acquisitions.

The fund is expected to seek deals that can deliver mid-double-digit net returns as it looks to buy cash-flowing assets in the top 15 populous US markets.

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