The State of Wisconsin Investment Board (SWIB) is planning to invest approximately $500m (€444.7m) in real estate between now and the end of the year, according to an email from the pension fund.
SWIB outlined its strategy for 2015 at its 10 June board meeting.
The fund will build out its portfolio with operators and strategies.
In an email, SWIB said it would invest in select separate account relationships or with joint venture partners.
The investor wants to place some capital into value-add strategies with a faster execution, where managers are able to invest in assets that can be can turned from value-add to core at a fast pace.
The pension fund defines the value-add strategy as one with a risk profile somewhere between core and opportunistic.
The investments could be either buying existing properties that need to be improved or investing equity in new developments.
SWIB expects US interest rates to rise this year.
One of its investment strategies for 2015 is to stress underwriting to account for the upward movement.
For its real estate portfolio, the pension fund wants to keep portfolio leverage in the 40% range.
The pension fund is planning to sell some assets this year and monetise non-strategic properties and/or richly priced assets.
SWIB recently committed $150m to a separate account with the Inland Group, which declined to comment.
The investment strategy is to acquire US retail properties via a core strategy.
So far this year, SWIB has invested $672m across a combination of core, value-added and opportunistic strategies.
The structure of these investments has included separate accounts, joint ventures and funds.
