State of Wisconsin Investment Board (SWIB) is investing in medical office properties through a joint venture with CBRE Global Investment Partners (GIP).

The $117bn (€100bn) pension fund said in a meeting document that it is committing $100m to CBRE GIP Medical Office Venture.

SWIB will be the majority owner of the assets and CBRE GIP will own a minority stake and act as manager.

SWIB told IPE Real Assets that the medical offices are “defensive, income-oriented with credit tenancy”.

The pension fund said: “There is strong user demand driven by demographics, and typically these assets have long-lease terms with built-in rent growth that provides protection against both rising interest rates and an economic slowdown.”

SWIB is also committing $100m to FPA Core Plus IV, a fund that invests in multifamily assets in the US.

“This strategy is renter by necessity, that will target class-B multifamily properties in class-A locations,” SWIB said.