Illinois Municipal Retirement Fund has added up to $150m (€131.9m) of new investments in real estate.

The US pension fund is carrying out a US value-added real estate fund manager search worth $50m.

Illinois, which has already interviewed existing managers Cornerstone Real Estate Advisors, TA Associates and Invesco Real Estate, will consider multiple and new investment managers.

A final decision will be made at a board meeting in April on the strategy, which would involve investment in the office, industrial, retail and apartment sectors.

Strategies will include development and redevelopment, as well as existing assets that can be improved through renovation or re-leasing.

Value-add funds typically target net IRRs of 12% to 15%.

Illinois Municipal made two new commitments into core, open-ended funds, committing $70m to AEW’s Core Property Trust and $30m to Invesco’s Core Real Estate Fund USA.

These funds are investing in core US property types.

Illinois Municipal has around $790m it could invest in real estate in the future before it reaches its 8% target allocation for the sector.

As of November last year, the pension fund had a real estate portfolio valued at $2bn, accounting for 5.7% of its $34.9bn total plan.