Illinois State Universities Retirement System (SURS) is investing $100m (€84m) in US real estate debt strategies through funds managed by Torchlight Investors and Basis Investment.

The $22bn pension fund has expanded its real estate manager lineup with the hiring of Torchlight and has approved a $50m commitment to the manager’s Torchlight Debt Fund VII, a fund planning a $1.5bn fundraise with a $2bn hard-cap. Fund VII targets traditional property types as well as hotels and student housing in the US.

Illinois SURS said it is also committing capital to the Basis Investment Group Real Estate Fund II fund by approving $50m or making a 10% contribution to the fund’s total commitments. The pension fund plans to invest the lesser of the two amounts.

The pension fund previously made a $30m commitment to Real Estate Fund I – the predecessor fund – which raised $410m in 2019.

Basis Investment has an investment history of investing in assets including offices, senior living, apartments, self-storage and retail.

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