The University of California has increased the target real estate allocations of its $3.2bn (€2.8bn) Retirement Plan and $516m General Endowment Pool.
The increase from 5% to 7% will mean an additional $650m of capital can be directed to real estate, based on March figures.
The university, advised by Mercer Investments, made the decision at a board meeting this week.
The Retirement Plan, which is advised by Mercer Investments, invests in real estate through funds and separate accounts.
Its separate accounts have delivered higher annual returns and it is looking to make selective acquisitions through them in major markets while targeting downside protection.
The fund has 45% of its real estate portfolio in core investments, 37% in value-add and 18% in opportunistic.
Just over 4.5% of its real estate assets are outside the US.
The General Endowment Fund, which only invests in real estate through funds, has 39% in core, 38% in value-add and 23% in opportunistic.
The endowment has 95.8% of its portfolio in the US.