US roundup: Ohio Police & Fire, Montana Board of Investments

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  • US roundup: Ohio Police & Fire, Montana Board of Investments

NORTH AMERICA – The Ohio Police & Fire Pension Fund has approved a commitment of as much as $40m (€31.3m) for TriGate Property Partners II

The pension fund has placed the fund into the tactical or non-core section of its real estate portfolio.

David Graham, communications manager at the pension fund, cited TriGate II's "very focused" investment strategy. 

The fund's strategy is to acquire domestic office, industrial and retail assets that are underperforming due to broken capital structures. 

The manager specialises in repairing the defects and leasing up the empty space. 

The primary market for these deals is in the Sun Belt area of the US.

Investors in the fund, which has an eight-year life – are projected to achieve a 15% net return with a 1.8x to 2x equity multiple. 

TriGate Property Partners is seeking a total equity raise of $350m.

Ohio Police & Fire is not quite at its 12% targeted allocation for real estate. 

Through the end of October, the pension fund had a real estate portfolio valued at $1.24bn. 

Real estate assets make up a little more than 10% of the investor's $12.3bn in total plan assets.

In other news, the Montana Board of Investments has approved two new real estate commitments of $20m each into the Realty Associates Fund X and CBRE Strategic Partners US Value 6

Both of these commingled funds have a value-added investment strategy.

David Ewer, executive director at the pension fund, said: "These latest commitments are reflective that we wanted to add more value-add commitments to our real estate portfolio.

We already have an established core portfolio to satisfy our needs at this time."

The commitments were made with the assistance of the pension fund's general investment consultant, RV Kuhns.

CBRE Value 6 has total capital commitments of $673m through the end of June. 

The transactions completed for the fund at this point have included office buildings and apartments.

Fund X, managed by TA Realty Associates, invests in value-added purchases for all the main property types around the US.

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