Teachers’ Retirement System of the State of Illinois is committing $300m (€247m) to the Starwood Distressed Opportunity Fund XII, as the real estate fund nears its capital-raising target of between $7.5bn and $8.5bn.

The pension fund told IPE Real Assets that it had backed the opportunistic real estate fund manager during a period of uncertainty after proving a positive track record over 18 years.

Illinois Teachers said it had “enjoyed a strong and successful relationship with Starwood dating back to 2002 and the trustees and investment staff believe this commitment to Starwood Distressed Opportunity Fund XII will continue that positive track record and benefit our members in the future”.

Starwood, which already manages $650m worth of real estate on behalf of Illinois Teachers, is close to concluding its capital raising for Fund XII.

According to a board meeting document of the Teachers Retirement System of Oklahoma it is aiming to raise between $7.5bn and $8.5bn.

A final close is expected in the quarter of 2021.

The fund is targeting the multifamily, office, hotel and industrial assets in the US and Europe.