State Teachers Retirement System (STRS) of Ohio plans to invest up to $500m (€462m) in real estate during fiscal 2025 by committing capital to four or five different funds, the pension fund disclosed as part of its investment plan for the period starting 1 July.
According to STRS Ohio, the funds which will focus on either international real estate or opportunistic investments, will each receive an investment of between $75m and $100m.
The $91bn pension fund said it expects the capital deployed by the funds to be restricted to established markets.
In addition to investing through funds, STRS Ohio also has a direct real estate portfolio, through which it acquires properties in industrial, apartment and retail sectors without relying on external managers.
The pension fund’s plan for the in-house portfolio involves shifting its focus within the US. STRS Ohio expects to reduce its holdings in the Midwest and East regions by selling assets while increasing investments in properties located in the South and West.
For the internally managed real estate portfolio, the pension fund plans to make new transactions by prioritising stabilised core assets and new developments.
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