The State Teachers Retirement System of Ohio is looking to invest in real estate outside the US.

The US pension fund will look to increase its investment in core Europe, targeting distressed assets in the Continent’s major markets, according to its 2016 plan.

The UK, France and Germany are preferred investment locations.

The fund’s current 9.8% allocation to real estate could be increased to around 10% of its $75.5bn (€69.4bn) in total assets.

Ohio State Teachers is one of the few major US public pension funds to invest directly without the help of outside managers.

In addition to Europe, the fund is also looking to invest in distressed opportunities in Japan, while monitoring China for the eventual emergence of a more favourable investment environment.

The fund is planning to reassess Latin America once currency levels normalise.

Ohio State Teachers indicated it could invest capital in retail, to which it is currently underweight.

The sector makes up 16% of its real estate portfolio.

The pension fund prefers dominant centres in urban and infill locations, as well as grocery-anchored, necessity-based neighbourhood centres.