Illinois Municipal sets aside $115m for real estate investment

The Illinois Municipal Retirement Fund has approved $115m (€104.7m) in commitments to real estate funds.

The US pension fund committed $50m to AEW Partners VIII, $35m to CBRE Strategic Partners US Value 8 and $30m to Long Warf Real Estate Partners V, helping it move closer to its target real-estate allocation of 8%.

The current allocation is 5.4%, with total plan assets of $34.7bn.

The commitment with Long Warf follows a $13.7m investment in Long Warf Real Estate Partners IV, through its emerging manager of managers investment programme overseen by Franklin Templeton. 

Illinois Municipal has had direct relationships with both AEW and CBRE Investors in the past, having invested $245m with the former and $217m the latter.

CBRE Investors is seeking a total capital raise for the US-focused Fund VIII of $1.5bn.

Capital will be invested in office buildings, apartments and hotels in markets with strong growth prospects.

The value-add fund will look to buy properties that are under-performing or have occupancy issues.

AEW is aiming to raise $650m for Partners VIII, an opportunity fund.

Most of the portfolio will be in North America, although AEW can have up to 15% of the portfolio outside the region.

The fund will target existing assets or real estate loans.

Annualised returns for the fund are expected to be 16-18%.

Long Warf is looking to raise $350m for Partners V, investing in smaller deals and markets and aiming for a 12-15% net IRR.

Leverage for the fund, which is investing in office, industrial and retail assets, is capped at 65%.  

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2435

    Asset class: CLOs.
    Asset region: Global.
    Size: USD 50m.
    Closing date: 2018-05-22.

  • QN-2436

    Asset class: Real Estate - Core Open-ended Real Estate Equity Fund (non-listed).
    Asset region: Asia Pacific.
    Size: Approx. CHF 70-100m per investment.
    Closing date: 2018-05-25.

  • QN-2438

    Asset class: High Yield Bonds.
    Asset region: US.
    Size: USD 300 million.
    Closing date: 2018-05-25.

Begin Your Search Now