Ohio Public Employees Retirement System is planning to invest up to $500m (€444m) in real estate debt strategies this year.
The pension fund told IP Real Estate that this was partly to mitigate the downside risk of future real estate market cycles.
Most of the investment – approximately 80% – is expected to be made through separate account mandates, providing greater control, but Ohio PERS will also consider funds.
The pension fund also expects to invest between $250m and $400m in real estate funds pursuing development and redevelopment strategies in the US.
This could include investment in the industrial sector and hotels.
According to its 2015 investment plan, Ohio PERS will also focus on stabilising its existing non-core property assets, decreasing portfolio leverage and selling select assets.