UNITED STATES - Washington State Investment Board has decided to allocate $100m (€68.4m) into a commingled fund providing debt and equity investments in Brazilian real estate.

The pension fund decided at its board meeting on January 17 to allocate funds to Prosperitas Real Estate Partners II by placing a $50m commitment to the commingled fund on its own along with another $50m commitment from its emerging markets fund of funds account.

The fund of funds account now has total assets worth $525m and was created to invest capital in commingled funds which in turn invest in emerging markets real estate around the world, so its potential areas of investment include South America and Asia.

Prosperitas Capital is the real estate manager of Real Estate Partners II, based in Sao Paulo, Brazil.

It is understood institutional investors around the world believe Brazil's improving economy is creating some good investment opportunities for both residential and commercial projects, which could involve either buying existing properties or investing equity in new developments.

Washington State and Prosperitas already have a history of doing business together, as the pension fund made a $50m commitment to Prosperitas Real Estate Partners I in September 2006.

This initial commingled fund raised $330m in equity and was again invested in Brazilian residential real estate.