Ohio police, firefighters approve $75 million for Fairfield apartment fund | News

The Ohio Police & Fire Pension Fund invests in multifamily real estate in the United States through a value-add fund managed by Fairfield Residential.

The pension fund said it had made a capital commitment of $75 million (€69.9 million) to Fairfield US Multifamily Value Add Fund IV.

The fundraising target amount for the latest Fairfield fund is currently unknown. Fairfield raised $1 billion for a previous fund in the series, closing in September 2018.

The latest fund's investment strategy will focus on acquiring existing undervalued assets with potential for future value creation as well as investing equity directly into new development projects.

Fund IV, which targets a net internal rate of return of between 12% and 13%, will use 65% leverage.

So far this year, Ohio police and firefighters have approved three real estate bonds worth a total of $225 million. The commitments include the pension fund's previously announced $75 million each placed in AEW Partners Real Estate Fund X and Oaktree Real Estate Opportunities Fund IX.

IPE Real Assets previously said the $18 billion pension fund intended to invest up to $275 million in real estate in 2024, with all of that invested in non-core assets.

Real estate makes up $1.83 billion of the pension fund's portfolio, with a 12% allocation target for the asset class.

To read the latest IPE Real Assets magazine, click here.