The Illinois Municipal Retirement Fund has redeployed $150m (€127.9m) of capital invested in US real estate to European property markets.
According to a board meeting document, the pension fund said it would invest €100m into Ares European Real Estate Fund V and €50m into Barings European Core Property Fund.
Illinois Municipal said it would fund the commitments by redeeming an investment in the Barings Core Property Fund, a $3.3bn US-focused portfolio.
Ares is planning a €1.25bn capital raise for its fifth European fund, which will focus on value-added office and residential assets in the UK, Germany and France.
Barings European Core Property Fund is a diversified, pan-European open-ended vehicle. In March this year, IPE Real Assets reported that the fund had raised €506m.
Illinois Municipal has also approved allocations of $150m each into the Heitman America Real Estate Trust and the JPMorgan Strategic Property Fund.
The manager’s fund has a net asset value of $7bn, as of the end of June. The fund has an existing entry queue of $1.1bn. Most of the capital for the fund is invested in the four main property groups – office, industrial, retail and apartments.
Heitman did not respond to a request for comment.
Illinois Municipal approved two additional real estate investments. These were $100m into Buckhead Properties, run by TA Associates, and $75m into Artemis Real Estate Partners Fund III.
- Ares European Real Estate Fund V
- Artemis Real Estate Partners Fund III
- Barings European Core Property Fund
- Buckhead Properties
- European Investors
- Heitman America Real Estate Trust
- Illinois Municipal Retirement Fund
- Investment Strategies
- J.P. Morgan Strategic Property Fund
- JP Morgan Asset Management
- Open-ended funds
- Pension Funds
- Real Estate
- TA Associates
- UK Investors