Ohio Bureau of Workers places $200m into core real estate
The Ohio Bureau of Workers Compensation Board is to invest $200m (€183.3m) in core, open-ended real estate funds.
The new commitments by Ohio BWC are part of an increased real estate allocation of 12% approved in February.
Ohio BWC has now invested $200m in the Invesco fund. On the first $100m, Ohio BWC earned an 11.93% return since July 2013.
The Invesco USA fund had a net asset value of $6.2bn at the end of last year, with a loan-to-value ratio on the portfolio of 19.58%.
The fund, which has a current entry queue of $122m, invests at least 85% of its portfolio in core US assets.
Invesco can invest up to 15% in a value-added property strategy. Recent deals include a retail property in Los Angeles, bought for $40m, and a high-street retail asset in Chicago for $14m.
Heitman’s fund is diversifying by property type and economic exposure, buying assets in infill locations with major metropolitan areas.
The fund has some exposure to non-traditional core assets, such as a recent follow-on investment to a self-storage portfolio for $122.4m.
This fund, which has net asset value of $4.5bn, has a currrent entry queue of $939m.
Cornerstone’s Patriot Fund has a net asset value of $2.6bn.
The fund’s recent deals included a $192m investment in an office and retail complex in Florida.
No less than 90% of the portfolio is invested in core assets, with an option to invest up to 10% of the fund in value-add deals, such as lease-up, development, repositioning and to-be-built ventures.
Ohio BWC’s has allocated 7% to core investments, 3% to core-plus and 2% to value-add.
Responses to the core-plus RFP were due on May 14, with investor and real estate consultant RVK due to make a final decision at the pension fund’s October board meeting.