REAL ESTATE - The $11bn Illinois State Board of Investment will be investing up to $90m (€71.7m) into three non-core pooled (commingled) funds.
The fund will take the action at its board meeting later this month, June 29-30.
The three commingled funds that it will be committing capital to are TA Realty Fund VIII, DB Global Opportunity Fund II and RREEF American REIT III.
The pension fund will make these commitments with the assistance of its real estate consultant, The Townsend Group.
The consultant’s Principal Rob Kochis said, “These investment funds are run by very strong managers and will allow the pension fund to achieve more diversification within the real estate portfolio.”
TA Realty Fund VIII is a commingled fund managed by TA Associates Realty. The commingled fund is projected to have a total equity raise of $1.5bn.
Most of the deals for the fund will be investing in office and industrial properties around the country.
DB Global Opportunity Fund II is an entity run by RREEF. Equity commitments to the fund will total $1bn. The investment strategy covers splitting up the portfolio in three regions around the world. Around 1/3 of the deals will be done each in North America, Europe and Asia. The transactions will involve all the major property types and mixed-use projects.
Illinois State has a targeted real estate allocation of 10%. The pension fund is right at its real estate allocation now.