The Florida State Board of Administration has approved $150m (€136.9m) in real estate commitments.
The US pension fund is committing $100m to the Blackstone Real Estate Partners Fund VIII and $50m to Heitman Value Partners III.
Blackstone recently bought its first asset for Fund VIII, a portfolio of 38 offices in Seattle’s Bothell and Redmond East sub-markets.
The transaction was part of the $23bn debt and equity deal in April between Blackstone and GE Capital Real Estate.
The Seattle portfolio is around 80% let, lower than the current market average.
Blackstone raised $15bn of equity for the opportunity fund, which is investing globally.
The real estate manager is considering all major asset classes, looking at assets worth at least $50m.
Heitman’s Value Partners III, which attracted $500m, will invest up to $1.5bn over the next three years.
Leverage on the value-add fund is around 67%.
Some of the capital will be invested with US public and private real estate operating partners.
Heitman has already invested at least 40% of the equity in a range of property types including offices, medical office buildings and self-storage assets.