Ohio Police & Fire Pension Fund is investing in US multifamily real estate via a value-add fund managed by Fairfield Residential.
The pension fund said it has made a $75m (€69.9m) capital commitment to Fairfield US Multifamily Value Add Fund IV.
The fundraising target amount for the latest Fairfield fund is currently unknown. Fairfield raised $1bn for a previous fund in the series, which closed in September 2018.
The latest fund’s investment strategy will focus on acquiring existing undervalued assets with the potential for future value creation as well as investing equity directly in new development projects.
Fund IV, which targets a net internal rate of return of between 12% to 13%, will utilise a leverage of 65%.
So far this year Ohio Police and Fire has approved three real estate commitments worth $225m in total. The commitments include the previously reported $75m each the pension fund placed into AEW Partners Real Estate Fund X and Oaktree Real Estate Opportunities Fund IX funds.
IPE Real Assets previously reported that the $18bn pension fund intends to invest up to $275m in real estate in 2024, all of which will be placed into non-core assets.
Real estate accounts for $1.83bn of the pension fund’s portfolio which has a 12% allocation target for the asset class.
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