U.S.-based pension fund State of Wisconsin Investment Board loaned $165 million to real estate manager Heitman, to invest in luxury hotel financing, IPE Real Estate reported.

SWIB told the publication that the pension fund is shifting its focus toward carrying out real estate debt deals in the hotel sector on the back of "less competition for transactions currently."

According to a board meeting document cited by IPE Real Estate, the fund is currently mulling three real estate commitments: a $159 million separate account targeting medical office buildings in the U.S., a $100 million core real estate account and a $75 million commitment to a close-ended fund, which invests in industrial properties.