Illinois Teachers commits $500m to real estate

The $45.9 billion Teachers’ Retirement System of the State of Illinois has committed $500 million to three real estate investment vehicles.

The first allocation was a $300 million commitment to existing manager Starwood Capital Group for the creation of Illinois TRS Separate Account, a value-added real estate separate account that will invest in U.S. property. The pension fund previously committed $300 million to Starwood Global Opportunity Fund XI, a fund that invest in U.S. and European properties, in August.

The additional allocations were commitments of $100 million each to two real estate debt funds managed by Oaktree Capital Management and Pacific Investment Management Co.

The closed-end Oaktree Real Estate Debt Fund II, managed by Oaktree Capital Management, will invest in real estate debt in the United States. The pension fund previously