Virginia Retirement System has approved a $250m (€225.5m) commitment to a newly created real estate separate account with Hamilton Lane, according to the pension fund’s board meeting document.

The pension fund has made the initial commitment to the Hamilton Lane VA Real Estate SMA, a separate account that will invest in real estate fund managers managing funds of less than $1bn, according to sources familiar with the matter.

The strategy will mainly target North America, but will also include opportunistic exposure to other regions, focusing on managers in developed markets.

Virginia Retirement told IPE Real Assets that investment decisions for the separate account will be made jointly by the pension fund and Hamilton Lane.

Hamilton Lane declined a request for comment.

Virginia Retirement has also approved a $150m commitment to Pretium Homebuilder Finance Fund, a fund managed by US residential credit fund Pretium.

The Pretium fund’s investment strategy includes investing in residential transition and homebuilder finance loans.

The Pretium fund raised $550m at its close in January, with Virginia Retirement making a commitment towards the end of the fundraising period.

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