Illinois Municipal slates up to $200 million for 4 real estate funds

RICK BAERT at Pension & Investments reports that Oak Street Real Estate Capital’s Fund III is one of four real estate funds slated by Illinois Municipal to receive investment with commitments totaling $25 million:

Illinois Municipal Retirement Fund, Oak Brook, on Friday approved committing a total of up to $200 million to four multi-sector value-added real estate funds.

The pension fund committed up to $75 million to Crow Holdings Realty Partners Fund VII, managed by Crow Holdings Capital; up to $50 million each to Rockwood Capital Real Estate Partners Fund X and TA Realty Associates Fund XI; and up to $25 million to Oak Street Real Estate Capital Fund III.

The commitments to Crow Holdings, an institutional real estate investment manager that also runs money for the Trammel Crow family, and Oak Street, a Hispanic-owned emerging manager, are the first for the $35.6 billion pension fund.

Rockwood Capital and TA Realty manage IMRF assets in other value-added real estate funds.

The board’s investment committee recommended the commitments at a meeting Thursday.

The commitments are part of the pension fund’s move to bring its real estate allocation closer to its 8% target, said Dhvani Shah, chief investment officer. The fund’s actual allocation to real estate is 6.4%.

Before Friday, IMRF had committed a total of $205 million so far this year to two non-core real estate funds, one core fund and one opportunistic fund, Avery Robinson, vice president at IMRF’s investment consultant, Callan Associates, said at Thursday’s committee meeting.

Assets for the real estate commitments are coming from its global equity allocation; no managers are being terminated.

An RFP was issued Jan. 9. Callan assisted.

View source version on Pensions & Investmentshttp://www.pionline.com/article/20150529/ONLINE/150529865/illinois-municipal-slates-up-to-200-million-for-4-real-estate-funds

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