Ohio Police & Fire Pension Fund is redeeming part of its investment in PGIM Real Estate’s core open-ended fund to help balance the pension fund’s real estate portfolio.

The pension fund said it has approved to take $40m (€37.4m) out of the $233.5m it had invested in PRISA as of the end of the first half of the year.

Ohio Police & Fire has been an investor in PRISA since December 2006.

Ohio Police & Fire told IPE Real Assets that “PRISA was the pension fund’s largest active position in our strategic portfolio relative to the benchmark. The rebalancing will bring its weight more in line with our other strategic positions.”

Ohio Police & Fire is unsure when the capital will be returned but said it hopes the real estate market will stabilise in 2024 and “PRISA will be able to pay out a good portion of the redemption during the year”.

The pension fund said it intends to add “additional commitments to other strategic open-ended funds, although the timing of that is uncertain and is not tied to the receipt of the proceeds from any particular redemption”.

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