Teachers’ Retirement System of the State of Illinois (TRS Illinois) intends to invest $700m (€645m) in real assets in the current fiscal 2023 year, the pension fund disclosed the pacing plan in a board meeting.

The plan for the year which started on 1 July involves placing $450m into opportunistic real estate funds and making $250m worth of infrastructure and energy sector investments.

TRS Illinois said in the document that a material funding gap has begun to emerge for leveraged real estate owners in the US. This might lead to them having to sell their properties, which could make it a good time for opportunistic real estate strategies.

In the current fiscal year, TRS Illinois also stated it could make additional real estate investments once its search for a new core real estate separate account manager is finalised. TRS Illinois did not disclose the amount it has set aside for new core real estate separate account manager.

Another part of the real estate strategy will be to continue to deploy capital into its emerging manager programme and to consider new investment opportunities on an international basis.

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