Employees Retirement System of Texas has allocated $325m (€238m) for real estate investment in its next financial year, with non-core real estate the main focus.

An additional $150m of capital from the plan’s current fiscal year could be rolled over and used for real estate investment in 2015. Texas Employees has proposed $150m for value-add and $100m for opportunistic investments and $75m for core, through a combination of commingled funds, separate accounts and co-investments.

As well as US, Asia and Latin America, the pension fund will also look to invest in European real estate. Texas said current Eurozone difficulties - as well as forced deleveraging  - are impacting many financial institutions. European real estate, it said, provides risk-adjusted opportunities similar to those available in the US in recent years. Returns derived from income, rather than capital appreciation, are preferred by the plan.

The pension fund, which works with real estate consultant RV Kuhns & Associates, has previously approved €60m and €46m respective commitments to Orion Capital Managers Fund IV and Prologis European Properties Fund II.