TPG Real Estate’s latest opportunity fund, which is seeking to raise $3bn (€2.6bn), is over-subscribed, according to one of its investors.

New Mexico Educational Retirement Board (NMERB) told IPE Real Assets that it wanted to commit $50m to TPG Real Estate Partners III but had to reduce this to $40m due to the level of investor demand.

NMERB said it could look to invest the remaining $10m at a future date by purchasing a stake in the fund on the secondary market.

It is the first time the pension fund has invested with TPG Real Estate. In recent years, NMERB has only invested with its existing roster of real estate fund managers.

IPE Real Assets reported in October last year that the US private equity firm TPG was planning to raise $3bn for its third real estate fund. 

TPG declined a request for comment.

Partners III will primarily target investments in the range of $100m to $300m, but will also make smaller equity investments to purchase platforms with a view to funding future growth.

Previous backers include US state pension funds Texas Municipal Retirement System and New Jersey Division of Investment.