Sterling Organization is seeking between $300m (€269m) and $425m for a fund focused on grocery-anchored shopping centres in the US.

Sterling United Properties (SUP) II has so far raised $190m, already exceeding the $160m raised for its predecessor in December 2016.

The fund will target net returns of 9% by investing in stabilised or core-plus shopping centres that are anchored by grocery stores and are first or second for market share in their regions.

In a board meeting document, Montana Board of Investments said it is committing $30m to the fund, the first time it has invested with Sterling Organization.

The $18.6bn pension fund has also hired CenterSquare Investment Management to run a new $40m real estate investment trust mandate.

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