Federal Capital Partners and Cabot Properties intend to raise $650m (€554m) and $600m respectively for their latest US property funds, according to a new investor.

Teachers’ Retirement System of Louisiana (TRSL) said in a meeting document that it has approved $50m each into FCP Realty Fund IV fund and Cabot Industrial Core Fund II.

Federal Capital’s Realty Fund IV capital will be invested in multifamily properties.

Federal Capital raised $512m for its third property fund in October 2016. Its two previous funds produced a net internal rate of return of 24.9% on 42 realised investments.

Cabot’s first core fund raised $443m in 2016. Like the first fund, Core Fund II will focus on industrial markets in Chicago, Dallas, Los Angeles, Atlanta and Eastern Pennsylvania.

In March, IPE Real Assets reported that Pennsylvania Public School Employees’ Retirement System had invested $100m in Cabot Industrial Core Fund II.

Cabot Industrial Core Fund II is targeting net returns of 8-10% a year, with anticipated initial current yields of 5-6%.