Illinois Municipal Retirement Fund (IMRF) has issued a $125m (€109.4m) commitment to Blue Owl Capital’s latest net-lease real estate fund.
IMRF disclosed in a board meeting summary that it had placed the capital into the Blue Owl Capital Real Estate Fund VII, adding to the $275m in real estate investments Blue Owl/Oak Street Capital already manages for the pension fund.
As previously reported, Blue Owl Capital is seeking to raise $6.5bn for its latest net-lease fund, which will focus on assets in the US and Canada.
Fund VII is mainly expected to invest in industrial assets, with a smaller portion allocated to office and retail properties. Blue Owl Capital will be buying assets that are on a long-term lease of 15 years, with a minimum requirement of 11 years at the time of the purchase.
Blue Owl/Oak Street Capital typically incorporates 2% annual rent escalations in its transactions, according to people familiar with the fund.
The fund also targets property-level leverage of no more than 65% of cost.
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