Blackstone’s second Asia-Pacific real estate fund is receiving a $200m (€171m) capital boost from the New York State Teachers Retirement System (NYSTRS).
The US pension fund said told IPE Real Assets it had invested in the Blackstone Real Estate Partners Asia II fund. Blackstone declined to comment.
The pension fund said its decision was based on Blackstone’s presence in its target markets and its track record in the region. NYSTRS also said it will provide global diversification at a good time in the market cycle.
Blackstone is planning to invest the fund in China, Japan, India and Australia.
Its first Asia real estate fund has generated a net internal rate of return of a 17%, according to its third-quarter earnings report.
Last month, Virginia Retirement System told IPE Real Assets it had approved a $150m commitment to Blackstone’s real estate Asia II fund. It has also been previously reported by IPE Real Assets that a number of recent commitments have come from investors in the US, including San Francisco City Employees, Illinois Teachers, and the Illinois Municipal Retirement Fund.
Blackstone revealed last month that the fund had secured total commitments of $5bn.
The commitment to Asia will represent the eighth time NYSTRS has made a commitment to an Asia-focused investment fund. The previous seven commitments total $571m.
NYSTRS also said it had retained Callan Associates as its real estate consultant.
