Ohio Workers’ commits $50m
The Ohio Bureau of Workers’ Compensation has committed $50 million to Latitude Management Real Estate Capital IV, confirms Tony Gottschlich, public information officer with the insurance plan.
The value-added fund will invest the majority of its capital providing floating-rate bridge loans with three- to five-year terms, typically between $5 million and $15 million in size. The fund will focus on U.S. properties in the Southeast, Southwest and West Coast, specifically targeting apartments, smaller office buildings and middle-market flagship hotels. Leverage is not expected to exceed 60 percent.
The fund’s IRR is expected to be between 10 percent and 11 percent. The fund’s predecessor, which received $50 million from Ohio BWC as well, has provided investors a 10 percent IRR to date.
The pension plan has a target allocation to real estate of 12 percent of its $25.6 billion in assets, including a 2 percent target to value-added real est