New Mexico State Investment Council (SIC) has approved a $100m (€95m) commitment EQT Exeter’s latest value-add US industrial real estate fund.

The sovereign wealth fund said it has made the commitment to EQT Exeter Industrial Value Fund VI, a fund which targets gross internal rate of returns of 16% to 18%.

According to sources, EQT Exeter is seeking to raise $5bn for the industrial real estate fund.

The latest commitment is in line with New Mexico SIC’s plan to invest more capital into the industrial real estate sector.

Through the fourth quarter of last year, New Mexico SIC had 34% of its existing real estate portfolio invested in industrial compared with 27.7% industrial portfolio for the NFI-ODCE Index.

New Mexico SIC, which was considering making a $100m commitment to the Blackstone Real Estate Partners X fund, said it will no longer be making the investment as Blackstone had moved up a deadline for making the commitment. The sovereign wealth fund said it had to pull out because it could not meet the new deadline set by Blackstone.

Blackstone did not respond to a request for comment.

To read the latest edition of the latest IPE Real Assets magazine click here.