Virginia Retirement System is continuing its US apartment development programme with a $200m (€183m) commitment.
The pension fund, according to an email, is backing Pritzker Realty Group’s HTC-VA Multifamily II vehicle.
The partnership is investing in new apartment schemes constructed by local developers.
Virginia will be the majority owner of any investment made, with Pritzker responsible for finding investments.
The US apartment market continues to show strong rental demand, according to industry sources, with the East and West Coasts, where young professional technology workers prefer to rent, particularly active markets.
Developments give investors access to higher yields, with some additional risk.
In its US Real Estate Strategic Outlook Mid-Year Review for 2015, Deutsche Asset & Wealth Management said the return on cost for new construction in the coastal markets was between 5.25% and 6%.
The figure compares with 3.75-4.5% for existing, prime core assets in the same markets.
Virginia and Pritzker Realty began their relationship in 2012 with a $200m commitment, with a three-year investment period for the capital.
The pension fund has also approved a $200m allocation to the Stonepeak Infrastructure Fund II.
The fund, which has a hard cap of $3.5bn, invests in infrastructure assets in the US and Canada, as reported here.