UNITED STATES - Ohio Police & Fire Pension Fund has voted to approve the transfer of seven separate account assets and move them into a commingled fund.
The pension fund believes this real estate transaction will produce more diversification for its real estate portfolio as the seven transferring properties, currently managed by Invesco Real Estate, have a value of $235m (€166m) while the commingled fund that the assets will be placed into has total assets of $1.7bn.
Ohio Police & Fire found it became necessary to look at moving the separate accounts into a commingled fund because the separate accounts and commingled fund were being managed by the same real estate manager.
As a result, it hired Robert A. Stanger & Co. in spring this year as a real estate independent fiduciary to assess the implications.
Price of the transfer of the assets and the amount of capital the pension fund will be investing in the commingled fund as a result will not be determined until the end of the year.
However, the transfer does mean the assets are technically removed from the Ohio Police & Fire balance sheet once the deal is completed.
These separate account core assets are currently a mixture of office buildings, industrial properties, retail and apartments spread across the US and will shift into the Invesco core real estate fund - a commingled fund which is expected to hold assets of $2.5bn by the end of the year.