Orange County Employees Retirement System (OCERS) has set a real estate pacing plan of up to $325m (€282.4m) for the 2026 calendar year.
The pension fund disclosed in a board meeting document that it intends to issue between $50m and $100m in new commitments to core real estate funds. Last year OCERS made no new commitments to the core segment of its real estate portfolio.
The pension fund said the core investment strategy this year will include increasing its exposure to niche sectors. This will be achieved through additional capital top-ups with current managers, new commitments and the exploration of secondary market acquisitions.
The pension fund’s largest core open-ended exposures currently consist of $254m in the Principal US Property Account and $189m in the Morgan Stanley Prime Property Fund.
For non-core real estate, OCERS expects to allocate between $150m and $250m to the sector.
The pension fund intends to allocate its non-core capital toward niche sectors such as data centres and specialised housing, including build-to-rent, student housing and manufactured homes.
The fund also plans to leverage existing relationships to secure better deal flow and reduced fees, while pursuing secondary market transactions and recapitalisations.
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