Illinois SURS commits $195m to noncore real estate
The State Universities Retirements System of Illinois has hired Franklin Real Asset Advisors to manage $90 million in an emerging manager noncore real estate fund of funds, according to recently released meeting documents. It is anticipated that $30 million will be allocated this year and $30 million each of the next two years. Oak Street Real Estate Capital and Grosvenor Capital Management were also considered. Separately, SURS committed $35 million each to three noncore real estate funds: Blue Vista Real Estate Partners IV, a U.S. value-added fund; Brookfield Strategic Real Estate Partners II, a global opportunistic fund that focuses on commercial properties; and Crow Holdings Realty Partners VII, a U.S. value-added fund. The $16.9 billion pension fund has a 10 percent target allocation to real estate, 35 percent of which is earmarked for noncore investments.