IMRF backs Blackstone's new global real estate debt fund

Illinois Municipal Retirement Fund (IMRF) is among investors in Blackstone’s latest global real estate debt fund.

The $40.7bn (€36.4bn) pension fund said it had committed $100m to Blackstone Real Estate Debt Strategies (BREDS) IV.

It is not known how much capital Blackstone is seeking to raise for the fund, but it secured $4.5bn for its predecessor in 2016.

According to Blackstone’s first quarter results, $392m of capital flowed into its BREDS business in the first three months of the year, and it attracted $5.29bn of inflows over the past 12 months.

Blackstone declined a request for comment.

According to IMRF, Blackstone will invest in a variety of loans, including mezzanine debt, secured against single assets and portfolios across the Americas, Europe and Asia-Pacific.

The fund will target net returns of between 9% and 11%.

IMRF also revealed it was committing $50m to Rockwood Capital Real Estate Partners Fund XI, which targets value-add investments primarily in the US office and multifamily sectors.

The fund is targeting net returns of 12% to 14%.

As previously reported, Rockwood is seeking $1.25bn for the fund. It has so far raised ‘soft circled’ close to $600m, according to sources, including yet-to-be-approved commitments.

The previous fund raised $1.1bn in 2017.

Rockwood declined a request for comment.

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