Ohio Police & Fire Pension Fund has agreed to make a $75m (€69.1m) commitment to Alterra Property’s latest US value-add industrial outdoor storage (IOS) fund.

IPE Real Assets understands that the actual amount Ohio Police & Fire will place into Alterra IOS Venture III could be lower as Venture III is expected to be oversubscribed.

As previously reported, Alterra Property is seeking to raise $750m for Venture III, which has an $850m hard cap target.

Venture III invests in industrial outdoor storage properties including assets used for storage, truck parking, equipment repair, container yards and building materials.

The fund expects to generate net internal rate of returns in the range of 14% to 16% with 30% to 40% of its total returns coming from current cash flow.

The commitment is the first-ever relationship between Ohio Police & Fire and Alterra Property. It also marks Ohio Police & Fire’s first real estate commitment for 2023. As previously reported, the pension fund intends to place between $140m and $215m into non-core real estate funds this year. No capital has been earmarked for core real estate.

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