US roundup: Orange County Employees, SWIB, Tennessee Consolidated

Orange County Employees Retirement System is planning to invest $125m in value-added real estate strategies this year, and potentially $150m in 2015.

According to communications manager Robert Kinsler, the pension fund will focus on US real estate in 2014, but could look to more international strategies next year.

Orange County plans to sell as many as five core properties held directly in a separate account managed by CBRE Global Investors and reinvest the capital in commingled funds.

The pension fund has been selling down its separate account as it moves towards a funds-only strategy. There are six assets left in the account, valued at $245m.

Orange County’s real estate portfolio posted a 13.8% return during the first quarter of 2014, outperforming its benchmark, the NCREIF ODCE Index, by 120bps. The pension fund has a total real estate portfolio valued at $1.2bn.

State of Wisconsin Investment Board (SWIB) is planning to back US real estate strategies to the tune of $346m this year.

The institution is considering a $100m commitment to a fund that would acquire core retail properties.

It is also close to establishing a $146m separate account to invest in value-added office assets where the pension fund would take preferred equity positions.

SWIB is also to invest $100m via a separate account to invest in value-added office and industrial assets.

SWIB would not identify any of the investment managers involved.

Tennessee Consolidated Retirement System is close to buying an industrial property in Illinois for $50m and a shopping centre in Minneapolis for $35m.

The former is being acquired by TA Associates Realty and the latter by Deutsche Asset & Wealth Management.

Michael Brakebill, the pension fund’s CIO, said: “These transactions have not closed as the managers are now conducting due diligence.”