Illinois Retirement System Pumps $75M into Real Estate Fund

As part of its increasing real assets portfolio, the State Universities Retirement System of Illinois (SURS) will commit $75 million to a real estate fund.

Trustees approved an allocation to Brookfield Strategic Real Estate Fund (BSREP) V. The fund is the flagship US-focused real estate strategy of Brookfield Asset Management. The Toronto-based firm’s BSREP vintage already manages $97.6 million in assets for the pension fund.

SURS has been concentrating its efforts on real assets in recent years, and in June it renewed Callan’s five-year contract as its consultant for the asset class, which presently has $2.6 billion in commitments.

The plan describes annual capital deployment at a level that allows the strategic objective to be achieved over time. The long-term aim for real assets is now 13% (8% for steady growth and 5% for non-traditional growth).

Torchlight Debt Fund VIII ($50 million); Longpoint Fund III ($60 million); Homestead Capital USA Farmland Fund IV ($40 million); Brasa Real Estate Fund III (lesser of $50 million or 10% of total fund commitments); and Long Wharf Real Estate Partners VII (lesser of $40 million or 10% of total fund commitments) were made in non-core real assets during the fiscal year 2023.