State Universities Retirement System of Illinois is planning to focus on non-core real estate as it invests $300m (€232m) over three years.

The pension fund has approved an investment plan for 2015 to 2017 and will begin a search for fund managers at the end of the month, according to CIO Daniel Allen.

He said Illinois State Universities would most likely allocate $100m to two managers with a view to investing on a global basis.

Finalists will be brought before the pension fund for approval in March 2015.

“We are pretty well set with the amount of capital we have already invested in core,” Allen said. “There also is the belief that there are more good investment opportunities in the non-core sector.”

The pension fund has a 10% target real estate allocation but had an 8% exposure at the end of June.

The majority of this shortfall is to be made up in its 6% private real estate allocation. Its 4% REIT allocation is close to being fully invested.

Illinois State Universities is being advised by consultancy NEPC.