Employees Retirement System of Texas has made a $100m (€84.5m) commitment to the Latitude Management Real Estate Capital IV, a real estate debt fund.

With this commitment, most of the capital raise for the $250m fund has now been accounted for, according to the pension fund.

The other major commitments were $75m from Pennsylvania Public School Employees Retirement System and $50m from the Ohio Bureau of Workers Compensation Fund.

The fund has a value-add debt strategy and will target assets that can be improved under new ownership.

As much as 60% of the investments will be made in the apartment sector, alongside small office buildings and middle-market hotels.

At least 95% of the fund will be invested in first-mortgage bridge loans and most will have terms lasting for three to four years.

Annualised returns are projected to be 10% to 11% from quarterly dividends.