NORTH AMERICA – The Ohio Police & Fire Pension Fund is planning to invest $110m (€83m) into real estate between now and the end of the year.
All of the capital will be invested in the pension fund's tactical or non-core portfolio.
This strategy will be done through close-end commingled funds.
The scheme said it would consider domestic commingled funds in the US and abroad.
Investment decisions will be made together with real estate consultant the Townsend Group.
The capital is part of the pension fund's real estate investment plan for 2013, which called for as much as $230m in commitments to the asset class.
The actual amount invested for 2013 will only be $205m if the pension fund finds a home for the $110m being planned before the end of the year.
Ohio Police & Fire has made two real estate commitments so far this year totalling $95m.
Both of these investments were for real estate in the US.
These were a $45m allocation to Savannah Real Estate Fund III for value-add office buildings in the Northeast and $50m into the USAA Eagle Real Estate fund, a core plus investment fund.
Ohio Police & Fire has yet to make any inroads into its goal of increasing its international real estate portfolio.
At the end of last year, this section of its portfolio was 8%.
Ohio Police & Fire beat its benchmark for its real estate portfolio over the first quarter, producing a 2.8% net return versus the ODCE index's 2.4%.
The pension fund has a real estate portfolio valued at $1.25bn, as of the end of July, making up 9.4% of the total portfolio.
The targeted allocation for real estate is 12%.
