Teachers’ Retirement System of the State of Illinois (TRS Illinois) is investing in Lone Star’s sixth real estate fund and plans to issue a request for proposal for a consultant for its $7.4bn (€6.6bn) real estate portfolio.
TRS Illinois said it approved a $300m commitment to the Lone Star Real Estate Fund VI at last week’s board meeting.
Lone Star already manages a $154m real estate portfolio on behalf of the pension fund.
Lone Star is seeking to raise $3bn for Real Estate Partners VI, a fund that will make debt and equity investments in Western Europe, North America and Asia.
TRS Illinois, which typically hires real estate consultants on five-year contracts, appointed StepStone Real Estate in 2014. StepStone is allowed to bid for the new contract.
TRS Illinois typically invests through a combination of funds and separate accounts.