The Ohio Police & Fire Pension Fund has earmarked as much as $200m (€160m) for real estate investment next year.
The capital is being allocated as part of the pension fund’s 2015 real estate investment plan, with some capital to be invested outside the US, including Europe and Asia.
Ohio Police & Fire said it would only consider tactical or non-core opportunities via funds.
It said its current real estate portfolio had reached its allocation levels for core real estate, and that it would not be conducting any new manager searches.
The investor will receive recommendations from The Townsend Group on where capital will be invested.
Potential new investments will range from $40m to $70m.
Ohio Police & Fire’s portfolio is currently valued at $1.4bn, or 9.6% of its total investment portfolio, as of the end of November.
The fund has a 12% targeted allocation for real estate.
The pension fund’s most recent commitment was approved last month, an allocation of up to $50m for AEW Partners VII, a fund that buys distressed US properties in primary and secondary markets.
AEW Capital Management raised a total of $550m for Fund VII, which is targeting the office, industrial, retail and apartment sectors.