Oregon Public Employees Retirement Fund (OPERF) has approved a $150m (€128m) commitment to the Harrison Street Core Property Fund.

Anthony Breault, a senior real estate investment officer for the Oregon Investment Council, told IPE Real Assets that it would help diversify the $76.6bn pension fund’s core real estate portfolio.

The Harrison Street Core Property Fund invests in student housing, senior housing, medical office buildings and self-storage assets, and is able to include Canadian assets.

The core portion of Oregon’s $7.49bn real estate portfolio, currently includes office, industrial, retail and apartment assets. 

Breault said the Harrison Street fund was expected to target a 5% net return. “This compares to the more traditional core funds that produce net returns of around 4.5%,” he said.

Oregon has also approved a $50m recapitalisation within a separate account managed by Lionstone Investments. The capital will be used to fund the development of build-to-suit projects next to assets in Austin and Pittsburgh already owned through the separate account. 

In March this year, IPE Real Assets reported that Oregon could spend up to $850m on real estate as part of its 2018 investment plan.

The pension fund said it is currently considering up to two core-plus investments before end of the year.