State Teachers Retirement System of (STRS) Ohio expects to write down the value of its $7.7bn (€6.9bn) real estate portfolio by more than 5% due in part to the COVID-19 pandemic.
In an investment plan report, the $80.9bn pension fund said it expects its real estate portfolio to fall by $400m during the last two months of its fiscal 2020 year ending 30 June.
As at the end of April this year, the portfolio was valued at just under $7.7bn, a slight drop from the $7.8bn recorded at the beginning of the 2020 fiscal year which commenced in July last year.
STRS Ohio said it expects to begin the fiscal 2021 year with a $7.3bn real estate portfolio as a result of potential write-downs due to the pandemic and expected year-end loan proceeds.
As part of its fiscal 2021 investment plan, the pension fund intends to focus on portfolio holdings and acquisitions in major US metropolitan markets.
In fiscal 2020, the pension fund acquired $150m of properties and sold almost $500m within its internally managed portfolio.
During the period, it also issued a $40m commitment to a core plus US medical office fund as well as commitments worth $245m to funds targeting real estate opportunities in Europe and Asia.
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