Texas Permanent School Fund is one of the first investors to commit to Blackstone’s debut core-plus real estate fund.
The investor confirmed to IP Real Estate that it had committed $100m (€80m) to Blackstone Property Partners, an open-ended vehicle that will invest in the US.
Blackstone, traditionally an opportunistic fund manager, is aiming to raise $1bn for the fund, which will target returns of 9% to 11% with approximately 50% leverage, according to sources who have seen the private placement memorandum.
Blackstone Property Partners, which has yet to invest, will acquire individual assets and invest in operating companies in the office, industrial, retail and apartment sectors.
Blackstone moved into the core-plus sector earlier this year through a number of transactions, including a $600m investment in One Market Plaza in San Francisco and a $968m entity-level investment in the Edens Investment Trust.
Texas Permanent has also approved a $25m commitment to the Blackstone Real Estate Partners Europe IV. It follows an initial $75m commitment made in December last year.
Blackstone is looking to raise $5bn for the fund, which will invest in distressed assets in Europe.
Blackstone declined to comment.
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