Three US public pension funds have committed $105.5m (€94.9m) in total to NREP’s latest value-add Nordics real estate fund.

The NREP Nordic Strategies Fund IV fund received $35m each from the Los Angles City Employees’ Retirement System (LACERS) and Los Angeles Fire and Police Pensions and €32m from the Sacramento County Employees’ Retirement System, each investor revealed.

As previously reported, the San Diego City Employees’ Retirement System said it was also considering issuing a $30m commitment to the fund, which is seeking to raise €1.25bn to invest in underserved market segments in the Nordics.

Fundraising for NREP Nordic Strategies Fund IV is expected to exceed the €400m raised for Fund I in 2014, the €600m raised for Fund II in 2016 and the €900m raised for Fund III in 2018.

The fund will focus on logistics, student housing, serviced living, care homes and other senior housing.

Fund IV has a gross internal rate of return target of 17% with income distributions starting at 4% to 5% per annum.