New York State Teachers' Retirement System created a $200 million real estate debt separate account with Raith Capital Partners targeting investments at attractive risk-adjusted returns, IPE Real Assets reported, citing a board meeting document.

The capital will be deployed in U.S. investments that are expected to range from $5 million to $40 million.

The pension fund also allocated a further $300 million of capital to two of its existing real estate fund managers, with GCM Grosvenor getting $150 million to pour capital into debt and equity investments. An equal amount was approved for Cabot Industrial Core Fund II, which will target core industrial assets in top U.S. industrial markets.