New Mexico State Investment Council (SIC) has approved a $100m (€90.7m) commitment to an open-ended US multifamily property fund managed by Cortland.

The $26bn sovereign wealth fund said in a meeting document that it is for the first time backing the US multifamily homes operator by investing via the manager’s Cortland Partners Growth and Income Fund.

According to New Mexico SIC, the core-plus US property fund has a current net asset value of $612m.

New Mexico SIC became under-allocated to multifamily last year after issuing a full redemption for its $98m investment in the Berkshire Multifamily Income Realty Fund.

New Mexico SIC plans to exceed its allocation to the property type this year by investing in other multifamily funds.

Cortland created the fund in the latter part of 2018 with a seed portfolio of 10 assets that totalled 3,454 units. The leverage on the fund will be 50%.

The fund targets assets that can produce 11% to 12% gross and 9% net internal rate of returns.

Cortland declined a request for comment.