A Lone Star Funds-managed global real estate fund, seeking to raise $6bn (€5.6bn), is nearing its first close, according to a potential investor’s meeting document.

Arkansas Teacher Retirement System, which is planning to approve a $50m commitment to Lone Star Real Estate Fund VII, disclosed that the fund had set its first close period to be from mid-to-late December 2022 and had been extended through January 2023.

The amount of capital expected to be raised in the first close is currently unknown. Lone Star declined a request for comment.

The fund, which is expected to target debt and equity investments, intends to have 35% to 55% of its portfolio in Europe, around 30% to 50% of the portfolio in North America with Japan making up between 25% to 40% of the assets.

Consultant Townsend Group disclosed in Arkansas Teacher’s meeting document that the fund expects over-weights to more distressed property types in the hotel and retail sectors as well as sectors like senior housing, where the manager sees long-term structural demand interrupted by short-term factors.

To read the latest edition of the latest IPE Real Assets magazine click here.