Rockpoint Group is seeking a $3.25bn (€2.9bn) capital raise for its sixth opportunistic real estate fund, according to sources that track fundraising.

It is understood that Rockpoint Real Estate Fund VI, which will follow on from its $3.28bn predecessor, has yet to hold a final close.

South Dakota Investment Council has approved an investment in the fund, according to a board meeting document, but did not disclose the size of the commitment.

Fund VI targets US office, hotel and residential markets. Sources believe Rockpoint will be buy existing assets below replacement cost with a view to improving them.

Rockpoint declined a request for comment. 

The $14.9bn South Dakota investment council said it also approved an undisclosed commitment to Blackstone Real Estate Partners IX, which could raise as much as $20bn before the end of year.

An earlier version of this story incorrectly stated that Rockpoint Real Estate Fund VI targets UK assets.