New Jersey Division of Investment (DOI) is considering making a $250m (€233.7m) commitment to Bain Capital’s third real estate fund, according to the pension fund’s meeting document.

New Jersey DOI said it is considering placing the capital into Bain Capital Real Estate Fund III, a fund planning to raise $3.75bn, with a $5bn hard cap. New Jersey DOI will allocate the potential investment in Fund III to its non-core real estate portfolio.

An estimated $309m general partner commitment is expected from Bain Capital to the fund which targets a gross internal rate of return of 18% by investing mainly in infill industrial, medical and life science real estate in North America.

Bain Capital declined a request for comment.

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