Arkansas Teacher Retirement System (ATRS) has approved a $50 mln (€46.7 mln) commitment to Blackstone’s seventh European opportunistic real estate fund, reports IPE Real Estate.
Rod Graves, deputy director for Arkansas Teacher Retirement System, said the pension fund has backed Blackstone Real Estate Partners (BREP) Europe VII.
BREP Europe VII’s capital-raising target is expected to be close to the €9.8bn raised for the predecessor fund in 2020.
IPE says Blackstone is expected to issue a $130 mln co-investment into the fund.
BREP Europe VII targets an internal rate of return of 15% net and 20% gross as it targets transactions including equity and debt deals across Europe.
ATRS said in a meeting document that BREP Europe VII will have a leverage component of 70% to 85%.
BREP Europe VII will mainly target logistics, hospitality and residential assets including student housing.
*see the new issue of PropertEU for an interview with Blackstone's head of Europe real estate, James Seppala. It is understood a first close of the new Europe fund is in the works for H2 this year. In the interview, Seppala says: 'Europe at the moment is providing compelling investment opportunities and we anticipate that will remain the case for some time.'