Arkansas Teacher Retirement System (ATRS) has approved a $50m (€46.7m) commitment to Blackstone’s seventh European opportunistic real estate fund.

Rod Graves, deputy director for Arkansas Teacher Retirement System, said the pension fund has backed Blackstone Real Estate Partners (BREP) Europe VII.

BREP Europe VII’s capital-raising target is expected to be close to the €9.8bn raised for the predecessor fund in 2020.

Blackstone is expected to issue a $130m co-investment into the fund.

BREP Europe VII targets an internal rate of return of 15% net and 20% gross as it targets transactions including equity and debt deals across Europe.

ATRS said in a meeting document that BREP Europe VII will have a leverage component of around 70%.

BREP Europe VII will mainly target logistics, hospitality and residential assets including student housing.

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