The Texas Municipal Retirement System is to invest $600m (€544.5m) in real estate over the next three years.
The US pension fund, according to a board meeting document, will invest $200m each year until 2019.
Texas Municipal, advised by RVK and already invested in Europe and the US, will invest the capital in funds.
Funds could be a mixture of core, value-add or opportunistic strategies across a variety of property types.
The pension fund is also planning to re-evaluate its core real estate portfolio and rebalancing initiatives.
Texas Municipal had a total core real estate portfolio valued at $957.2m as of the end of 2015.
Its debt core funds are Walton Street Real Estate Debt and H2 Credit Partners.
Texas Municipal is also planning to research real estate co-investment opportunities more extensively.
The pension fund has yet to structure an investment in real estate using this strategy.
The co-investment could be on a specific property owned by another manager or investor, or a fund.
This strategy could be with a manager it already has a relationship with, or a new manager.