Orange County Employees Retirement System (OCERS) has established a real estate pacing plan of up to $400m (€369m) for 2025, according to the pension fund’s meeting document.
OCERS intends to consider new commitments of up to $100m to core or core-plus funds and allocate between $225m and $300m to non-core real estate investments during the current year.
The core real estate strategy includes evaluating existing open-ended positions to rebalance the portfolio. This evaluation will focus on optimising fee structures, increasing exposure to high-performing managers and aligning investments with desired property types to enhance overall portfolio performance.
As part of the plan, the pension fund is considering reducing its $243m position in the Principal US Property Account to align with other core holdings. The second-largest core open-ended investment is $190m held in the Morgan Stanley Prime Property Fund.
The non-core investment strategy will target opportunities that complement the existing portfolio, thematic investments with established specialist managers and alternative speciality sectors with growth potential.
The strategy will target assets like data centres, industrial outdoor storage, build-to-rent, cold storage, manufactured housing and real estate credit.
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