Virginia Retirement System has added Tristan Capital Partners to its list of managers for real estate.
The US pension fund has made a 鈧�75m commitment to Curzon Capital Partners 5 Long-Life, a European real estate fund.
Virginia said 鈥渢he investment will complement the overall assets that we current hold in our real assets portfolio鈥�.
As of the end of 2016, the pension fund had invested around 6.5% of its total real estate portfolio in Europe.
The capital from Virginia is part of the 鈧�800m for Curzon Capital 5, which has an open-ended structure and a value-add investment strategy.
Curzon Capital Partners 5 Long-life is the latest in Tristan Capital鈥檚 core-plus series of European real estate funds 鈥� but is the first to use a 鈥渓ong-life structure鈥�.
In March, Tristan Capital said the vehicle had 鈥渕ultiple liquidity features and will allow investors to recycle capital in the same vehicle鈥�.
The annoucement comes at a time when a number of investment managers are raising capital for as they respond to investor demand for income yields.
A mixture of existing office, logistics, retail and residential property types will be bought for the fund, which is aiming for a net 10% IRR.
It will mostly be buying assets in Western and central markets in Europe.
Virginia, which does not have a specific targeted allocation for real estate, will only invest in the asset class when it finds what it considers to be a compelling investment opportunity.
The real estate portfolio is part of its real assets portfolio.
The pension fund had invested $8.9bn or 12.8% of its $69.9bn of total plan assets in real assets, at the end of 2016.
