State Teachers Retirement System (STRS) of Ohio intends to invest in international real estate over the next 12 months as it continues to sell directly-held US assets.

In July last year, IPE Real Assets reported that the pension fund planned to sell $300m (€258m) of assets from its US property portfolio and reinvest the proceeds over the subsequent 12 months.

In its investment plan for its new fiscal year, beginning this month, STRS Ohio said it intends to sell more assets, including $150m of sales that it failed to close during the previous fiscal year.

The proceeds from the sales will be invested in funds, the pension fund said.

Part of the strategy is to invest in funds that target mispriced or under-managed assets in core European markets, and funds that invest in industrial assets in Japan and China.

In fiscal 2018, STRS Ohio allocated 60% of the $310m it invested internationally to Europe, with the rest allocated to Asia.

In its domestic market, the pension fund will continue to focus on the main property types in major metropolitan markets across the US to provide diversification, it said.

STRS Ohio is also conducting due diligence on two senior housing fund managers.