Illinois State Board of Investment, Chicago, plans to search for real estate managers to invest some $600 million over the next two years. Trustees at the $10.3 billion fund expect to allocate $540 million to core and lower-risk commingled funds and $60 million to real estate managers investing in Illinois through separate accounts.
Townsend, the board's real estate consultant, will initially screen incumbent commingled managers RREEF, J.P. Morgan Fleming and PRISA for investment opportunities to present to the board's trustees, possibly later in summer. Townsend will then broaden the search to other firms. The three incumbents manage $100 million, $84 million and $83 million, respectively, for the board. Further funding will come from increasing the board's real estate allocation to 10% from about 6%, approved early this year.