The $51.7 billion Teachers’ Retirement System of the State of Illinois has committed a total of $300 million to two real estate funds, according to Dave Urbanek, director of communications for the pension fund.
The first commitment was $200 million to Fortress Japan Opportunity Fund IV, a fund managed by Fortress Investment Group, a diversified global investment manager. It is a Japan-focused opportunity real estate fund that will invest in debt secured by properties. Illinois TRS previously committed $100 million to the series’ predecessor fund, Fortress Japan Opportunity Fund III, in 2015. Fund III held a $1.1 billion final close later that year.
The second commitment was $100 million to a fund managed by Principal Real Estate Investors. It is to an existing investment that Illinois TRS has with Principal. The pension fund said it is not a commingled fund, and the fund pursues a strategy in value-add industrial. The pension fund also said that before this latest commitment, the investment with Principal totaled $184.6 million.
As of July 31, 2018, Illinois TRS had a target allocation to real estate, which is in its real assets portfolio, of 15 percent and an actual allocation of 13.6 percent.
