Key Takeaways
- • Ohio Public Employees Retirement System (PERS) has allocated $800m (€704m) across three US real estate debt vehicles to enhance portfolio yield and net asset value stability, according to a board meeting document.
- • The largest single commitment is a $400m separate account awarded to Ohana Real Estate Investors, marking Ohio PERS's first investment with that manager.
- • Ohana has full investment discretion to target lodging-asset debt opportunities expected to generate net returns of at least 10%.
- • The remaining $400m was split evenly between Axonic Commercial Real Estate Fund III, targeting US bridge financing, rescue capital and distressed real estate, and Affinius Tactical Partners IV, focused on industrial, multi-family and data centre properties.
Summary
Ohio Public Employees Retirement System (PERS) has committed $800m (€704m) across three US real estate debt vehicles, according to a board meeting document reported by IPE Real Assets. The pension fund's stated objectives are to enhance portfolio yield and stabilize net asset value.
The largest commitment is a $400m separate account awarded to Ohana Real Estate Investors. The allocation marks Ohio PERS's first investment with the manager. Ohana will hold full investment discretion to pursue debt opportunities in lodging assets, with a target of net returns of at least 10%.
The remaining $400m was divided equally between two funds. The first is Axonic Commercial Real Estate Fund III, which targets US bridge financing, rescue capital and distressed real estate. The second is Affinius Tactical Partners IV, a debt vehicle focused on industrial, multi-family and data centre properties.
The split between a single separate account and two commingled vehicles gives the pension exposure to a range of strategies, from lodging-focused lending with a stated return target to opportunistic and distressed credit and to core-plus sectors such as industrial and multi-family.
The largest commitment is a $400m separate account awarded to Ohana Real Estate Investors. The allocation marks Ohio PERS's first investment with the manager. Ohana will hold full investment discretion to pursue debt opportunities in lodging assets, with a target of net returns of at least 10%.
The remaining $400m was divided equally between two funds. The first is Axonic Commercial Real Estate Fund III, which targets US bridge financing, rescue capital and distressed real estate. The second is Affinius Tactical Partners IV, a debt vehicle focused on industrial, multi-family and data centre properties.
The split between a single separate account and two commingled vehicles gives the pension exposure to a range of strategies, from lodging-focused lending with a stated return target to opportunistic and distressed credit and to core-plus sectors such as industrial and multi-family.
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