Texas County & District Retirement System has increased its real estate allocation and has committed capital to opportunity funds.

The pension fund is increasing its target allocation by 1%, according to a board meeting document.

The real estate porfolio was valued at $558m (€512m) at the end of 2016, representing just over 2% of its $26bn in total assets.

The new allocation will mean it could have $260m of capital to invest in real estate.

Recent real estate investments have come in the form of commitments to value-added or opportunistic real estate funds.

Its most recent was a $100m investment in Carlyle Realty Partners VIII, a US-focused opportunity fund that has attracted other US pension funds, including Tennessee Consolidated Retirement System.

Texas County & District also committed €70m to Orion European Real Estate Fund V.

Orion Capital raised €1.5bn for the fund and plans to invest in real estate assets, loans and operating companies in Europe.

Texas County & District invested in the previous fund, committing €40m in 2013.

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