Iowa Public Employees Retirement System has selected PGIM Real Estate to run a $250m (€213m) real estate debt separate account.

In March this year, IPE Real Assets reported that the pension fund was planning to issue a request for proposal (RFP) – to which eight firms responded.

Iowa PERS said in an email that the investment guidelines for the account are being negotiated between the pension fund and PGIM Real Estate, the real estate investment arm of Prudential Financial, whcih declined to comment.

The separate account will invest in private commercial real estate debt globally, and can include core and opportunistic investments.

It will form part of the Iowa PERS’s private credit allocation, which the pension fund created towards the end of last year.

Separate accounts are the main structure that Iowa PERS employs for investing in equity private real estate.

The pension fund has 8% of its $31.5bn in assets in real estate, managed by Clarion Partners, Invesco Real Estate, RREEF America and UBS.