Tennessee Consolidated Retirement System (TCRS) has approved a $150m commitment to Blackstone Real Estate Partners (BREP) X, Blackstone’s latest global real estate fund.
The US public pension fund told IPE Real Asset that its decision to invest with Blackstone is that the BREP fund series has ”produced consistently attractive returns” since Fund I was initially raised in 1994 and seven of the nine predecessor funds are top quartile performers.
Blackstone declined a request for comment. The manager raised $20.5bn for the predecessor BREP IX fund in September 2019.
According to TCRS, Blackstone is planning to invest a minimum of 60% of the global fund in the US and Canada and will seek real estate transactions that can produce a gross internal rate of returns of 20%.
TCRS disclosed in a meeting document that it has also approved $100m to EQT Exeter Industrial Value Fund VI.
According to sources, EQT Exeter is seeking to raise $5bn for the value-add US industrial real estate fund.
“The industrial sector has been the strongest performing sector in ODCE for several years in a row and continues to exhibit compelling fundamentals,” TCRS said.
According to the pension fund, EQT Exeter has demonstrated a consistent “ability to execute and deliver outsized returns”, having liquidated predecessor Funds III and IV in which the pension fund was an investor.
TCRS said it has also put the 300-unit Kent Place Residences apartment complex in Denver up for sale. The pension fund acquired the 300-unit apartment complex in 2017 for $127.4m through a JP Morgan Asset Management separate account.
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