The property holdings of Merseyside Pension Fund produced a return of 6% in the past year according to its latest annual report.
The best performing category in the local government workers' fund was index-linked UK government gilts which returned 18%.
MPF's net asset value for property at 31 March 2012 was £290m, up from £251m a year earlier. The fund's total net assets were £5.2bn, up slightly from £5.1bn last year.
Overall, MPF returned 2.9% compared to its target of 3.6%, an underperformance of 0.7%. The average UK Local Authority fund returned 2.6% over the comparable period. The damage was done by tumbling values of overseas equities.
The fund's property portfolio is managed by CBRE in Liverpool. The fund's property return last year was around 10%.