Orange County Employees Retirement System (OCERS) is planning to sell the assets in its $69.7m (€64.9m) Orange Farms separate account as part of the pension fund’s plan to move its agriculture allocation to zero to help reduce its real assets target weighting.
The Orange Farms portfolio of 10 farmland properties, managed by Manulife Investment Management, comprises 68% row crops and 32% permanent crops.
The portfolio recorded a gross one-year return of 1.8% last year, compared with a 7.8% gross return for the same time period for the NCREIF Farmland Index. The since inception return for the portfolio was 4.4% compared with 10.2% for the benchmark.
OCERS disclosed in the meeting document that it approved $75m commitment to TPG Real Estate Partners IV, a fund seeking to raise $5.5bn.
According to the pension fund, the TPG Real Estate Partners fund will target 20% gross internal rate of returns.
As previously reported, OCERS plans to invest $425m in real estate this year.
To read the latest edition of the latest IPE Real Assets magazine click here.
