New Jersey Division of Investment has given Blackstone a new separate account to invest in global real estate alongside two new allocations.
The $151.5m (€134m) core-plus separate account includes a $1.5m investment by Blackstone.
Blackstone will invest in major international markets, targeting London, Paris, Frankfurt, Berlin, Tokyo, Hong Kong, Singapore, Shanghai, Sydney, Sao Paolo and Rio de Janeiro.
The fund manager will target existing, undermanaged assets in need of modest repositioning or capital upgrades. Office, industrial, retail and apartment assets are being targeted for the separate account, which has a return hurdle rate of 7%.
New Jersey has also approved a $50m commitment to Blackstone’s core-plus Blackstone Property Partners.
The fund, which has an initial capital raise of $2bn, is purely US-focused, targeting New York, San Francisco, Los Angeles, Boston and Washington DC.
New Jersey said targeted returns for the fund are a 9% to 11% net IRR, with around 50% of the total return generated through current income.
New Jersey also approved a $100m allocation to Blackstone’s Real Estate Partners VIII global opportunity fund.
With a primary focus on the US, the targeted capital raise for the fund is $13bn. Blackstone is making a co-investment of at least $300m into the fund, plus up to an additional 10% of each investment based on an annual election.
New Jersey is also in the process of redeeming out of a $400m, low yielding core commercial real estate debt stategy from Blackstone’s CT High Grade II fund.
- American Investors
- Capital Raising
- Closed-ended funds
- Hong Kong
- Investment Strategies
- Investment Vehicles
- Latin America
- New Jersey Division of Investment
- Open-ended funds
- Pension Funds
- Real Estate
- Separate accounts
- US Investors