LaSalle Investment Management’s eighth US real estate fund, seeking to raise $1bn (€863.4m), is expected to raise half of its target capital at first close at the end of the year.

According to sources close to the manager’s capital raising activities, the LaSalle Income & Growth Fund VIII fund could be having a first close in December and could attract around the $510m it raised for Income & Growth Fund VII.

IPE Real Assets understands that Arkansas Teacher Retirement System has recently made a $50m commitment into Fund VIII.

Contra Costa County Employees Retirement Association said in a meeting document that it will be evaluating the LaSalle fund in the near future.

LaSalle declined a request for comment.

Fund VIII will be looking to buy a mixture of US value-add properties that can produce a gross internal rate of returns in the range of 14% to 16%. 

LaSalle’s income and growth fund series has been running for over 20 years.