Teachers Retirement System of the State of Illinois (Illinois Teachers) has established a pacing amount of $900m (€812.9m) for its real assets portfolio in the 2025 fiscal year, which started on 1 July.
The pension fund said it has set aside $600m to invest in real estate, $225m for other real asset strategies and plans to invest $75m with emerging managers during the period.
The entire real estate allocation will be focused on opportunistic real estate, the pension fund said, adding that it will explore other investment strategies beyond funds, such as co-investments and secondaries.
The pension fund favours opportunistic real estate as it believes the current market conditions, characterised by rising interest rates and potential forced sales, will create favourable opportunities for this strategy.
Illinois Teachers has a history of investing in real estate locally in the US and globally.
The pension fund’s other real assets portfolio is predominantly focused on infrastructure, with smaller allocations to timberland and agriculture.
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