Illinois Municipal Retirement Fund, Oak Brook, on Friday approved committing a total of up to $283 million to three real estate managers.
The $34.8 billion pension fund committed up to $100 million to Blackstone Real Estate Debt Strategies III, managed by Blackstone Group, and €100 million ($108 million) to Ares European Property Enhancement Partners II, managed by Ares Management.
The Blackstone fund invests in real estate debt, while the Ares fund is a value-added real estate equity fund investing in predominantly U.K., German and French properties, according to a presentation Thursday by Dhvani Shah, chief investment officer, to the investment committee.
Blackstone and Ares currently manage IMRF assets in other real estate funds. The pension fund has invested a total of $350 million in four Blackstone real estate funds since 2012, including up to $100 million in Blackstone Real Estate Debt Strategies II, and committed $50 million to the Ares European Real Estate Fund IV in 2012.
The pension fund also committed $75 million to Artemis Real Estate Partners, an emerging real estate manager of managers. Artemis will invest in real estate equity and debt through the 27 emerging managers in its platform. Artemis is 80% women-owned.
Along with the initial commitment of up to $75 million, Artemis will receive additional commitments annually as determined by IMRF staff.
An RFP for the emerging real estate manager of managers was issued July 22. Investment consultant Callan Associates assisted.
The investment committee recommended the latest commitments at a meeting Thursday.
Illinois Municipal had 5% of its assets in real estate as of Sept. 30.