NORTH AMERICA – The Ohio Police & Fire Pension Fund has earmarked as much as $230m (€175m) for real estate investing in 2013.

The capital comes as part of the recently approved real estate investment plan, put together with the pension fund's consultant, the Townsend Group.

All of the capital planned for investment will be set aside for placing equity into the tactical or non-core sector of the pension fund's portfolio. 

There will be no specific capital allocated for the strategic or core portion of the portfolio.  
Ohio Police & Fire will only consider core investing on a "very selective" basis.

David Graham, communications manager at the scheme, said: "This kind of investing is being planned to create more overall balance in the real estate portfolio.

"Right now, the $1.25bn existing real estate portfolio has a split of 65% strategic and 35% tactical. The loan range goal is to get it closer to a 50/50 arrangement."

One of the scheme's aims in 2013 is to increase its exposure to international real estate, which now accounts for 8% of the portfolio.

Commitments in the past have included commingled funds invested in both Europe and Asia.

All of the capital to be invested in real estate next year will be through commingled funds, ranging from $30m to $70m per fund. 

They will all be sourced through Townsend. 

The pension fund's existing real estate portfolio totals 10.1% of its $12.4bn in total plan assets through the end of November. 

The targeted allocation for the asset class is 12%.