Vermont State Retirement System is searching for an investment manager to invest $100m (€94.2m) in international real estate.

The $3.9bn pension, which has an existing $262m real estate portfolio, is looking to increase its exposure to the asset class.

Matthew Considine, director of investments for the Vermont State Treasurer, said: “We are adding this capital to achieve additional diversification within our real estate portfolio and it will help build up our real estate assets toward the allocation we have stablished for this asset class.”

Last year, the investor increased its target allocation for real estate from 6% to 8%. The asset class sits within a wider alternatives allocation, alongside commodities and private equity.

According to a board meeting document, Vermont State Treasurer, which looks after investments for the pension fund, is not using a traditional request for proposals, but it will be working with its real estate consultant NEPC on the search.

There has been no decision made as to the level of risk and return the pension fund is willing to take.

It is likely that Vermont will hire one manager and invest in a commingled fund, because of the size of the mandate.

It has invested in international real estate funds in the past. In 2014, it made a $40m commitment to Siguler Guff Distressed Opportunities Fund II.

The pension fund has yet to determine a timetable for the search.