The Teachers’ Retirement System of the State of Illinois has approved new real estate commitments totalling $350m (€255.3m).

The new commitments were with three of the pension fund’s existing separate account real estate managers. 

These were $125m each with Capri Capital Partners and Invesco Real Estate and $100m with Heitman.

Capri is looking to buy apartments for the pension fund, including properties that can be either core properties or assets that have a value-added component.

The real estate manager will only be buying properties in the US. 

Capri currently manages a portfolio for the pension fund valued at $1bn.

Both Invesco and Heitman declined to comment on the awards. 

Both managers will be looking to invest in multiple property types and strategies in major markets across the US.

Invesco runs a portfolio for Illinois Teachers valued at $456.6m. 

Heitman has acquired properties for the pension fund currently valued at $1.2bn.

Illinois Teachers said that, in general terms, all three managers have investment discretion. 

The pension fund does have the ability to reject proposed asset purchases or sales based on the allocation of the overall real estate portfolio.

Illinois Teachers approved the new allocations for the three managers based on the recommendation of its real estate consultant, Callan Associates.

These allocations are part of approximately $600m of capital the pension fund allocated for new real estate investments for the 2013-14 fiscal year. 

This time period lasts until the end of March.

Illinois Teachers is planning to place this capital into core, value-added and opportunistic strategies, through commingled funds or separate account relationships.

The pension fund is planning to invest the capital on a global basis, in the US, Europe and Asia.

The pension fund now has a real estate portfolio valued at $5.1bn. 

Its long-term goal is to increase the allocation from its current level of 11.7% of total plan assets to a targeted allocation of 14%.

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