The Teacher Retirement System of Texas has approved a $300m (€271.9m) commitment into the Blackstone Real Estate Partners Europe V fund, according to an email from the pension fund.

The commitment is one of the largest the real estate manager has received for the vehicle so far.

It launched the €7bn capital raise during the first quarter of this year, as reported by IPE Real Estate.

Targeted returns for the fund are a 15% net IRR with a 1.7x net multiple.

Blackstone will co-invest at least €100m.

Much of capital could be invested in the UK, Germany and France – countries where Blackstone intends to invest approximately 60% of fund commitments.

Capital will also be invested in Ireland, Spain and Italy.

The opportunity fund will target distressed or non-stabilised real estate assets, in addition to placing entity-level investments in real estate operating companies.

Blackstone is targeting the office, industrial, residential, retail and hotel sectors.

Texas Teachers’s commitment is part of $500m approved in February.

The pension fund also committed $200m to Invesco’s value-add US VA Parallel Fund IV-2 in a limited partnership.

Most US value-add strategies are targeting net IRRs of 15%.

Invesco is investing in existing assets through renovation, as well as new developments in the office, industrial, retail and apartment sectors.