Illinois Municipal Retirement Fund (IMRF) has increased its exposure to net-lease real estate strategies by doubling its investment with Oak Street Real Estate Capital.
The $41.3bn pension fund said it will put $100m (€87.3m) into Oak Street Seeding & Strategic Capital Fund II. As previously reported, IMRF invested $75m into Oak Street Real Estate Capital Fund IV and also put $25m into Oak Street Real Estate Capital Fund III.
Oak Street specialises in net-lease US real estate investments, a strategy which invariably involves single-tenant assets with long-term, inflation-linked leases.
According to industry sources, the action taken by IMRF is another example of growing interest in net-lease strategies among US public pension funds. Many are seeking more conservative real estate strategies ahead of a potential market correction.
IMRF said it has also approved a $150m commitment to Blackstone Real Estate Partners IX, which is seeking to raise $18bn in total. Blackstone already manages a real estate portfolio valued at $663m for IMRF.
IMRF has also committed $25m to LaSalle Income & Growth Fund VIII, which is seeking to raise $1bn. IMRF’s previous investments with LaSalle is currently valued at $45m.