Ohio Public Employees Retirement System (PERS) has expanded its core real estate portfolio with three new fund commitments worth $1bn (€848.5m) in total.
The pension fund said it committed the capital across three new manager relationships, with investments of $500m to the IDR ODCE Index Fund, $300m to the Invesco US Income Fund and $200m to the BGO US Core Plus Fund.
Ohio PERS told IPE Real Assets said: “The core index seems to be at or close to the bottom. There has been a massive reduction in value over the last two years combined with significant debt paydowns and restructures.
“Combined with the lack of core/core-plus capital, we think the timing is compelling for an entry into this segment.”
Ohio PERS said it also made two opportunistic real estate commitments, investing $200m into Affinius Tactical Partners IV and $150m into Mavik Real Estate Special Opportunities Fund II.
According to an SEC filing, the Affinius Capital fund had raised $721m by August.
Mavik Capital Management is seeking to raise $515m for its fund, which will invest in mixed-use properties, hotels and retail. The pension fund committed $200m to the Sculptor Real Estate Fund V, a non-core fund.
Ohio PERS also created a new US real estate separate account with The Wolff Company, with an initial commitment of $150m to target multifamily debt and equity from core-plus to opportunistic strategies.
Ohio PERS said it transferred a $600m opportunistic real estate separate account from Fillmore Capital Partners to Principal Real Estate Investors.
The pension fund said it decided to transfer the account because the largest asset held by the separate account is an investment in a real estate operating company (REOC), and it wanted the account to be managed by a firm with a specific focus on REOCs.
To read the latest IPE Real Assets magazine click here.
