New Mexico State Investment Council is one of a number of investors that has chosen to maintain its exposure to a $14.6bn (€12bn) life sciences property portfolio managed by Blackstone.
The $29bn endowment was among limited partners in Blackstone Real Estate Partners (BREP) VIII given the option to stay invested in BioMed Realty by transferring their commitments to a new open-ended, core-plus vehicle.
A $25m commitment will be transferred from BREP VIII to Blackstone BioMed Life Science Real Estate, and New Mexico SIC has decided to double its investment by committing a further $25m.
New Mexico SIC told IPE Real Assets: “Life science is an attractive sub-sector of office space and there is very strong momentum occurring with the property type now.
“This will be the first time that we have invested in a commingled fund solely focused on the life-science property type.”
New Mexico SIC said it considers its investment in the new fund to have a core-plus profile and has a net target return of 12%.
According to New Mexico SIC, Blackstone BioMed Life Science Real Estate has a four-year lock-up period.
The fund has 80 operational assets, which represent 80% of its value, and a development pipeline.
The operational assets are 95% leased with an average-weighted lease term of seven years.
They are located in five markets, with the majority (54%) in Boston/Cambridge in the US. The rest are located in in San Francisco (19%), San Diego (17%), Seattle (5%), and Cambridge in the UK (5%).