IMRF hires four value-add managers for $200m

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Illinois Municipal Retirement Fund (IMRF) is investing $200m (€178m) in four value-added real estate funds.

The institution is committing $75m to Crow Holdings Realty Partners VII, $50m to TA Realty Associates Fund XI, $50m to Rockwood Capital Real Estate Partners Fund X and $25m to Oak Street Real Estate Capital Fund III.

The commitments are the outcome of a value-added real estate manager search started earlier this year. IMRF indicated at the time that at least $50m would be allocated to it.

According to IMRF, Crow Holdings has raised $814m for its fund and targeting up to $1.6bn. The final close is expected in early November.

The fund is targeted net returns of 10% to 11%, with a projected net equity multiple of 1.7x.

Realty Partners VII will be buying a mixture of traditional and non-traditional property types in the US, including apartments, retail, industrial, convenience and gas stations, hotels and office/medical buildings.

TA Realty Associates is buying lower to middle market deals for its fund. IMRF stated in a board meeting document that the fund will focus on assets where local investors are priced out and the deals are too small for larger institutional buyers. The average size deal for the fund is $25m.

Rockwood will be purchasing a mixture of office, industrial, retail and apartments in the US for its fund.

It is seeking $1.5bn in capital, and a first close is expected during the second quarter.

Oak Street Real Estate Capital will buy fully stabilised offices, industrial and retail properties in the US occupied by investment-grade tenant subject to triple-net or double-net leases.

Net returns for Fund III are projected at between 12% to 14% with a net equity multiple of 1.6x.

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