GLOBAL - The Wisconsin State Investment Board has made a $75m (€56m) commitment to the Mesa West Real Estate Income II commingled fund.

Pension fund officials said they believed there were still attractive investment opportunities in providing commercial real estate debt, and that they had conducted a thorough review of the fund before issuing its commitment. 

Mesa West Capital has been raising capital for the fund since 2008. 

One of the initial investors was the Pennsylvania Public School Employees Retirement System, which approved a commitment in August 2008 not to exceed 25% of the total equity raise for the fund, with a cap of $125m.

The expectation at the time was that investors would achieve a low to mid-teen internal rate of return.

The vast majority of the commingled fund will be invested in first mortgage loans. 

Fund documents indicate that at least 80% of the fund will be made up of first mortgage loans, with the remainder consisting of non first mortgage loans.

The fund will focus on the US West Coast, a region Mesa West is very familiar with, Wisconsin officials said.

Property types under consideration include office, industrial, retail, apartments and hotels.