The Oregon Public Employees Retirement Fund has lifted self-imposed restrictions to gain lower management fees in a real estate opportunity fund.

The pension fund’s investment policy limits fund commitments to $250m, but the Oregon Investment Council has approved lifting this for an investment in the Lone Stare Real Estate Fund IV.

According to board meeting documents, a $300m commitment will secure a discounted management fee and a better economy of scale.

Anthony Breault, senior real estate investment officer for the Oregon State Treasury, declined to comment.

The fund is expected to be oversubscribed, and limited partners that do not commit prior to the first close are likely receive a reduced allocation because the fund will be limited to $5bn in size.

The first close is scheduled for April 14, and so the decision was made ahead of the investment council’s meeting on April 29.

Last month, IP Real Estate reported that the The Teachers’ Retirement System of the State of Illinois had also committed $300m to Lone Star Fund IV.

Oregon PERF also has recently committed $100m to the Lone Star Residential Fund I, which is investing in residential mortgages in the US and is seeking total capital commitments of $1bn.