BlackRock is planning a $1.5bn (€1.25bn) fundraise for its US real estate debt fund, according to an investor.

Florida State Board of Administration (SBA) said it has approved a $200m (€166.7m) commitment to BlackRock US CRE Debt Fund.

The value-add fund will mostly be providing junior debt, but will also consider some whole loans and commercial real estate securities.

Florida SBA told IPE Real Assets that there is an estimated $2trn of real estate debt that will mature over the next five years, providing refinancing opportunities.

“As credit standards continue to tighten, we see a limited supply of first mortgage by traditional lenders. Participation by lenders in the mezzanine market also continues to decline as over-levered high yield debt funds and mortgage REITs deal with margin calls and credit issues,” the pension fund said.

Florida SBA said it has also made a $100m commitment into the CBRE Asia Value Partners V sidecar which invests in logistics development projects in Japan. The pension fund’s capital is part of the $265m co-investment capital raised by CBRE Global Investors in March.

Florida SBA has made a $100m commitment to Principal Digital Real Estate Fund, Principal Real Estate Investors’ digital real estate fund which seeks a $500m capital raise.

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