Pennsylvania Public School Employees’ Retirement System has revealed it is investing in Pramerica’s latest European real estate debt fund.

The pension fund has approved a £75m (€95.5m) commitment to Pramerica Real Estate Capital VI commingled fund, according to a board meeting document.

Pramerica Real Estate Investors did not comment.

Last month, IPE Real Estate reported that the New Mexico State Investment Council is investing £70m in the fund, which will take junior debt and preferred equity positions.

Both pension funds state that Pramerica is seeking to raise £1bn for the fund that will buy real estate loans predominantly in the UK and Germany – up to 30% can be allocated other Western European markets.

The fund is expected to obtain a total of 25 to 30 loans worth in the range of £25m to £30m and will target a gross return of 14%.

Since 2010, Pramerica has executed $2.5bn (€2.25bn) of European real estate debt investments secured on over $12bn of assets.

Pennsylvania PSERS also allocated $200m to Brookfield’s latest opportunity fund, Strategic Real Estate Partners II.

According to the board meeting document, Brookfield is seeking to raise $7bn for the fund and will be making a $2bn co-investment.

Brookfield Asset Management did not comment.