Ohio Bureau of Workers Compensation (BWC) is planning to redeem up to $875m (€737.4m) capital out of core and core-plus open-ended real estate funds to be used as part of payments being made to workers adversely impacted by the coronavirus pandemic.
Earlier this month, the provider of workers’ compensation insurance approved $5bn in dividend payments to Ohio employers to ease COVID-19’s impact on Ohio’s economy.
To support the dividend payments, Ohio BWC intends to redeem at least $325m from the funds and could take out up to $875m to lower the real estate portfolio to 15%. Ohio BWC has a 15% real estate allocation target with a 12% to 18% range allowance.
The provider of workers’ compensation insurance has investments in 13 open-ended core and core-plus investment strategies via funds like the UBS Trumbull Property Fund, Morgan Stanley Prime Property Fund, Prologis Targeted US Logistics Fund and the Clarion Lion Industrial Trust, with varying exit queues.
For instance, the UBS Trumbull fund has an $8.1bn exit queue whereas the Clarion Lion Industrial Trust has no queue at the moment.
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