The Pennsylvania Public School Employees' Retirement System approved $700 million of commitments to real estate funds of Brookfield Asset Management Inc. and U.K.-based TCI Fund Management, IPE Real Assets reported, citing a meeting document.

The pension fund will invest $300 million in the Brookfield Strategic Real Estate Partners III fund and $400 million in the TCI Real Estate Partners III fund.

The pension fund said the Brookfield fund is aiming for a hard cap of $15 billion. It will target real estate assets, companies, distressed debt and securities.

The TCI fund is looking to raise $3 billion and held its initial close in March, receiving commitments of $2.1 billion. The fund's second close is slated for October, and it plans to build a loan portfolio in trophy assets in prime locations in core markets.