New York pension fund targets Asian growth via Blackstone's $5bn strategy

Related Asset Managers

The New York State Common Retirement Fund (NYSCRF) is the latest US pension to join Blackstone’s $5bn (€4.3bn) pan-Asian real estate fund.

The pension fund has committed $300m to Blackstone Real Estate Partners Asia II, which according Blackstone’s most recent earnings report had raised $5bn in the third quarter of the year.

NYSCRF told IPE Real Assets that it based the decision on Blackstone’s presence and track record in the region, and the strength of Asian economies.

In 2014, NYSCRF invested $300m in the previous fund, which has generated a 17% net return.

The pension fund said Blackstone has the largest and broadest pan-Asian real estate platform, with six locally staffed offices in the region, and a “strong track record of performance”.

NYSCRF said: “According to the World Bank, Asian economies represent one third of global GDP and the rate of GDP growth in Asia is 2.5 times that of the US or Europe.

“Further, Asia is not as far into the real estate market cycle as either the US or Europe.”

NYSCRF said the fund had a size advantage and the ability to take on complex transactions, and would acquire high quality, well located assets “at discounts to replacement cost to construct a diversified portfolio”.

Asia II is targeting a gross internal rate of return of 20% and will be investing in China, Japan, India and Australia.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

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

  • QN-2540

    Asset class: All/Large Cap Equities.
    Asset region: UK.
    Size: The fund will be added to our guided fund range.
    Closing date: 2019-05-27.

  • QN-2541

    Asset class: Small/Mid-Cap Equities.
    Asset region: Switzerland.
    Size: CHF 130m.
    Closing date: 2019-06-04.

  • QN-2542

    Asset class: All/Large Cap Equities.
    Asset region: Switzerland.
    Size: CHF 130m.
    Closing date: 2019-06-04.

Begin Your Search Now