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.

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2572

    Asset class: High Yield Bonds.
    Asset region: Global.
    Size: $200m.
    Closing date: 2019-11-27.

  • QN-2573

    Asset class: Real Estate.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-06.

  • QN-2575

    Asset class: Core Real Estate Muli-Manager Separate Managed Account.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-20.

Begin Your Search Now