Dallas/Fort Worth International Airport committed up to $5 million in pension assets to the Ethika Diversified Opportunity Real Estate Fund, said Michael Phemister, vice president of treasury management.
The fund, which is managed by Ethika Investments, will focus on “investing in underperforming hotel and office properties, with a target allocation of 60% hotels and 40% office space,” according to materials prepared for the Thursday airport board meeting.
DFW Airport oversees two pension funds with a combined $525 million in assets — the General Employees of Dallas/Fort Worth International Airport Retirement Plan and the Department of Public Safety Retirement Plan.
The commitment will bring the funds’ real estate allocation up to the 10% target, Mr. Phemister said.
Investment consultant The Bogdahn Group assisted.
