CalSTRS backs Blackstone European real estate fund

The California State Teachers’ Retirement System (CalSTRS) is investing in Europe with Blackstone.

The US pension fund is making a €100m allocation to Blackstone Real Estate Partners Europe V.

The commitment, approved on the recommendation of Courtland Partners, will give CalSTRS 1.25% ownership of the €7bn fund Blackstone is raising.

CalPERS previously invested with Blackstone in 2012 and 2014, backing the US-focused funds VII and VIII with $100m and $150m commitments.

The latest investment is part of $808m (€723m) in new commitments added to the CalSTRS real estate portfolio in the first quarter of this year.

A $250m core commitment to a new joint venture with Beacon Capital Partners known as BCal will be used to invest in US offices.

The pension fund will hold a 95% ownership in the venture, with 5% held by the manager.

The projected return is expected to be at least 7%, net of fees.

CalSTRS also made a $200m investment into Belay Investment Group’s Partnership Ventures II fund, giving it a 40% stake in the fund.

Belay seeks to build a multi-partner investment portfolio diversified by operator expertise, geography and product type.

Investments will be made through non-discretionary joint ventures.

Other new investments by the pension fund include a $50m commitment to an existing joint venture with Principal Real Estate Investors and two separate account acquisitions, one being in Los Angeles.

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