Ohio Police & Fire Pension Fund (OP&F) is now planning to make new core real estate investments in the current year via new commitments and partial dividend reinvestment.

The $18.6bn (€15.7bn) pension fund, which had a $200m real estate pacing plan for 2021, intended to invest the whole amount into non-core real estate.

Regarding its latest plan to make new core real estate investments, the pension fund told IPE Real Assets: “As OP&F’s total portfolio grows, the 12% real estate target becomes a larger dollar amount. As a result of these and other factors, new commitments are needed to continue moving forward toward the allocation target.

“Active rebalancing, which is an ongoing process, also contributes to new investment needs.”

OP&F’s investment consultant The Townsend Group is now expected to make two investment recommendations for approval later this year. The pension fund is known for making commitments of not less than $50m per investment.

The core real estate investment plan for the year also involves a partial re-activation of OP&F’s dividend reinvestment plan for its $103.2m held in the Morgan Stanley Prime Property Fund and the $90.6m held in the LaSalle Property Fund.

The dividend reinvestment plan was suspended last year due to the pandemic.

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