The Ohio Bureau of Workers Compensation Board (Ohio BWC) has selected seven funds for its first foray into core-plus real estate, with total commitments reaching $700m (€620m).
The US pension fund has made $125m allocations to the Jamestown Premiere Property Fund, PRISA II and USAA Eagle Real Estate Fund, in addition to $100m to the JP Morgan US Real Estate Income and Growth Fund and $75m allocations each to the Clarion Lion Industrial Trust, Invesco US Income Fund and Prologis Targeted US Logistics Fund.
The allocations are the result of a new mandate established in April last year.
Up to 3% of the fund’s total plan assets will be invested in a core-plus strategy.
The investor believes this strategy will increase diversification from its core portfolio, with the added potential for higher returns.
Ohio BWC based its manager decisions on recommendations from its investment staff and real estate consultant RVK.
The funds will be buying US office, industrial, retail and apartments.
Two of the funds will be focused purely on industrial assets – the Lion Industrial Trust on development and existing assets, and Prologis on existing assets.
Ohio BWC has also committed $50m to the SARES-REGIS Value Add Multifamily Fund II.
The first asset in the fund was the 216-unit Vista Pointe Apartment Homes in Los Angeles.
The fund only invests in apartments in the US West, targeting Denver, Phoenix, Los Angeles, San Diego, San Francisco, Portland and Seattle.
The fund buys value-added existing properties.