UNITED STATES - Washington State Investment Board has approved a commitment of up to $600m (€375.1m) into the Lone Star Fund VI commingled fund.

This commitment is the second major allocation Lone Star has received for the commingled fund in the past few months, as Oregon Public Employees Retirement Fund committed $500m to Fund VI in January.

The Washington pension fund made this investment decision at its board meeting on April 17, assisted real estate consultant, Courtland Partners.

Lone Star is shooting for a total equity raising of $5bn on the opportunity fund.

Investors are predicted to see IRRs of 25% gross and 19% net IRRs through the fund's global investment strategy, which includes investments in the US, Japan and Germany.

It's projected around 25% of the fund will be placed into real estate transactions such as distressed debt, underperforming existing assets, development and redevelopment possibilities.

At the same time, many of the major property types will be considered for deals on the purchase of existing assets, entire portfolios and entity-level type transactions.