UNITED STATES - Ohio Police & Fire Pension Fund is continuing its high return commingled fund investing strategy by making a $25m (€16.2m) commitment to the Walton Street Real Estate Fund VI.
Ohio Police & Fire and Walton Street Capital do have a history of investing together as the pension fund previously made investments in Walton Street Real Estate Fund III and Walton Street Real Estate Fund V of $11.7m and $22m respectively.
Ohio Police and Fire has been very satisfied with the investment results in the previous commingled funds and believes there will be many strong investment opportunities this year in the opportunistic sector, as the Fund VI is projected to achieve a net IRR of 18% and an equity multiple of 2x.
Walton Street Capital is hoping to raise $3bn in equity for this latest fund, and will itself commit $50m, before using the fund to acquire existing single properties or portfolios of office, industrial and hotel real estate, as well as making entity level investments in real estate operating companies.
The vast majority of capital for Fund VI will be invested in the United States but a small portion will be placed in Mexico and India.
Ohio Police & Fire has a real estate portfolio valued at just over $1bn, amounting to 8.2% of its $12.4bn of total assets. The pension fund has a target real estate allocation of 8%.