Blue Owl Capital continues to attract capital to its net-lease real estate fund, securing $350m (€303m) from US public pension funds.
Blue Owl Real Estate Fund VII has received commitments of $200m and $150m from the Teachers’ Retirement System of the State of Illinois and the Texas County & District Retirement System (TCDRS), respectively, according to both pension funds.
Illinois Teachers has placed the investment into its $13.1bn real assets portfolio, while TCDRS issued its investment as part of its direct lending portfolio.
They are among a growing list of US pension plans to invest in the fund, which includes Mississippi Public Employees Retirement System, all seeking income returns from the net-lease strategy. According to sources, the initial yield investors can expect from investing in the fund is approximately 7%.
Last year, Blue Owl Capital set a $6.5bn fundraising target for the fund and an upper limit of $7.5bn.
The fund will invest in office, industrial, retail and data-centre assets in the US, typically a minimum of 11 years remaining on their leases.
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