San Francisco Employees’ Retirement System (SFERS) is investing in Harrison Street Real Estate Partners’ latest US opportunity fund.
The pension fund has approved a $50m (€47.1m) commitment to the Harrison Street Real Estate Partners VI fund, which invests in specialist property types, according to a board meeting document.
Harrison Street, which did not comment, is seeking to raise $950m fund, according to sources that track the fundraising.
Last year, the fund picked up a similar commitment from the Illinois State Board of Investment.
SFERS has invested with Harrison Street before, including a $50m commitment made to Partners IV in 2013.
Most of the new fund will be invested in US student accommodation, senior housing, self-storage, medical offices and healthcare properties.
Investments will include existing properties and development projects, and single assets and portfolio deals.
Harrison Street can use up to 70% leverage and is aiming for a net internal rate of return (IRR) of 16% and a gross IRR of 21%.