UNITED STATES - The Sacramento County Employees' Retirement System has said it will not support proposals to extend the investment period of the Hines US Office Value Added Fund II commingled fund.

The three-year investment period for value-added Fund II is due to run out at the end of October so Hines is trying to get 51% of the investors in the commingled fund to agree to rollover the fund for another 12-month period.

However, Jeff States, chief investment officer at the pension fund, said: "We believe, along with input from our consultant Mercer Investment Consulting, that there is not going to be any major difference in the value of office markets in a year from now. So we would prefer to end this fund sooner rather than later."

Sacramento County had been told by Hines that it is unclear whether it will get the necessary votes it wants from investors to prolong the investment period.

The pension fund made a $25m (€17m) commitment to Value Added Fund II in August 2006 and approximately $19m of this capital has been called upon by Hines. So the remaining $6m in assets could be freed up to do as the pension fund pleases if the investment period extension does not go ahead.

Hines had raised $828m though the fund but only 75% of the capital is estimated to have been invested at this point.

The commingled fund only invests in US office buildings and in existing office buildings with a value added component, such as a new leasing strategy or a redevelopment plan.