Connecticut Retirement Plans and Trust Funds is considering $140m (€123m) in new real estate commitments.
The US pension fund is considering $100m and $40m respective commitments to Blackstone Real Estate’s Partners VIII fund and Landmark Partners’ VII fund.
The investment with Landmark will be Connecticut’s first with the manager in real estate.
Denise Nappier, Connecticut state treasurer, said Blackstone has been a top performer for the pension fund in previous commitments.
Connecticut RPTF has previously invested $225m in three funds with the manager, with 13.9% to 17.5% net IRRs.
Blackstone is aiming for a $13bn total raise for Partners VIII, with leverage around 60% to 65%.
The Townsend Group, the fund’s consultant, said Blackstone will be looking at platform investments, portfolio acquisitions, single hard assets and mezzanine debt origination and/or discounted loan purchases.
Landmark Partners VII will place capital in secondary investments, through real estate funds, limited partnerships, joint ventures, real estate operating companies and non-traded REIT vehicles.
Targeted investment return for the fund is 20% gross and 16% net. Leverage will be 45% to 55%, up to a maximum of 70%.
Townsend said Landmark is increasing its capital raise for the fund to $1.6bn due to investor demand, from an original fund target of $1bn, with a $1.3bn hard cap.
Most of the capital will be invested in the US, with some investments in Europe and Asia.
Landmark has already completed two investments for the fund, investing $19.4m in a US-focused value-added real estate fund exposed to over 20 properties in major markets.
The manager has also bought 32 private equity real estate funds managed by 16 sponsors for around $300m. The funds include around 600 properties.
