New Mexico State Investment Council (SIC) is planning to increase its weighting to European real estate by investing up to $100m (€84.1m) a year.

In a board meeting report, New Mexico SIC said it intends to increase the European proportion of its real estate portfolio from the current 7.4% to between 10% and 15% over the next few years, adding that the economic outlook of key European economies has continued to improve.

All European investments will be made via non-core real estate funds.

New Mexico SIC, which manages New Mexico $23.2bn permanent endowment, plans to invest $235m in total in non-core real estate this year, including markets in the US and Asia.

It plans to increase this to $250m next year and up to $300m in 2020.

For core real estate, New Mexico SIC plans to allocate $130m to existing fund investments as part of a rebalancing initiative.

The sovereign wealth fund also wants its core portfolio to be overweight industrial and multifamily and be underweight office and retail.