LaSalle Investment Management’s eighth US value-add real estate fund is expected to reach a final close in the third quarter of the year, according to a potential investor.

In a board meeting document, Ventura County Employees’ Retirement Association (VCERA) said it will seek the approval of a $100m (€87.6m) commitment to LaSalle Growth and Income Fund VIII.

LaSalle is seeking to raise $1bn, with a hard cap of $1.5bn, VCERA said.

In October last year, IPE Real Assets reported that LaSalle could reach a first close in December 2018 and attract around $510m.

According to Dan Gallagher, VCERA’s CIO, LaSalle has offered discount fees to those investing in the fund’s first close as well as investors committing $100m.

The planned commitment by $5.4bn pension fund will cover the 2% allocation that was made by the pension fund in May of last year for non-core real estate.

LaSalle will be making a co-investment into the fund of $30m or 3% of the fund’s target size.

The value-add fund targets net returns of 12% to 14%., with a maximum leverage level of 65%.

LaSalle declined a request for comment.