GLOBAL – The New Jersey Division of Investment is now moving ahead with plans to make a $500m (€390m) investment into the Blackstone Real Estate Partners Asia commingled fund.
In a board-meeting document, the pension fund noted attractive investment opportunities in Asia, citing constrained credit markets and limited opportunistic capital.
New Jersey predicted Blackstone would be able to capitalise on the dislocation and distress in the market, including the developed markets of Japan and Australia and emerging areas of China and India.
The pension fund said Blackstone had demonstrated investment discipline and a lack of legacy issues in the Asia-Pacific region.
Real Estate Partners Asia, an opportunity fund, is Blackstone's first real estate vehicle exclusively focused on the region.
The total equity raise is projected to be $3.5bn.
The real estate fund manager will be making a $50m co-investment into the fund.
It will also contribute an additional 10% in each investment on a side-by-side basis.
The fund will target investments with expected returns of a 20% gross IRR and a 2x gross multiple of invested equity.
New Jersey brought the investment before its board based on the recommendation of its real estate consultant, RV Kuhns and Associates.