State Teachers Retirement System (STRS) of Ohio is considering making up to $500m (€459.6m) worth of commitments to funds with international real estate investment strategy as part of the pension fund’s fiscal 2024 investment plan.
For the new fiscal year which started on 1 July, the pensiion said it is considering making fund commitments of between $75m to $100m into up to five funds.
The plan is to target funds that invest in major markets and main property types.
STRS of Ohio also disclosed in the investment plan that it intends to identify more niche-type products and managers. Property types to consider as part of this strategy will include life science offices, medical offices, data centres and industrial properties in gateway markets and infill locations.
In the current fiscal 2024 year, the pension fund expects to make some US real estate acquisitions via its internally managed team. Most of the investments in direct real estate portfolio are expected to be apartments, industrial and retail, it said.
STRS of Ohio will look to reduce its office buildings allocation as the opportunity arises.
New investment in the US will include both stabilised core properties and new developments where it can capitalise on market opportunities, the pension fund disclosed in the investment plan.
As previously reported, the pension fund intended to add an active real estate investment trust (REIT) strategy to its public real estate portfolio. In the past, STRS of Ohio had passively managed its REIT portfolio.
Ohio State Teachers said it successfully transitioned its $1.1bn REIT portfolio from passive to active during the 2023 fiscal year, a move expected to generate additional returns to the real estate portfolio.
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