IMRF Commits $125 Million to Blue Owl Real Estate Fund VII

SPRINGFIELD, Illinois — The Illinois Municipal Retirement Fund (IMRF) has committed up to $125 million to the Blue Owl Real Estate Fund VII, as detailed in a recent statement. This investment adds to IMRF’s existing contributions of $275 million to Blue Owl Capital.

Blue Owl Real Estate Fund VII, managed by Blue Owl Capital, is a closed-end fund focusing on industrial assets in the United States and Canada. The fund aims to raise $6.5 billion. Its predecessor, Blue Owl Real Estate Fund VI, closed with an impressive $5.2 billion, exceeding its target by $1.6 billion.

As of March 31, 2025, IMRF reported total assets of $55.2 billion, with $4.7 billion allocated to real estate investments and a target allocation of 9.5 percent. The new fund will concentrate not only on industrial properties but will also invest a smaller portion into office and retail spaces.

The investment strategy includes acquiring properties that are on long-term leases, with a minimum duration of 11 years at the time of purchase. According to sources familiar with the fund, Blue Owl Capital plans to incorporate annual rent escalations of 2% and maintain property-level leverage of no more than 65% of the total cost.

IMRF’s commitment signals confidence in the growth potential of the real estate market, particularly in industrial sectors as demand continues to rise.