The New York State Common Retirement Fund (NYSCRF) is the latest US pension to join Blackstone鈥檚 $5bn (鈧�4.3bn) pan-Asian real estate fund.
The pension fund has committed $300m to Blackstone Real Estate Partners Asia II, which according Blackstone鈥檚 most recent earnings report had raised $5bn in the third quarter of the year.
NYSCRF told 91传媒在线 that it based the decision on Blackstone鈥檚 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 鈥渟trong track record of performance鈥�.
NYSCRF said: 鈥淎ccording 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.
鈥淔urther, Asia is not as far into the real estate market cycle as either the US or Europe.鈥�
NYSCRF said the fund had a size advantage and the ability to take on complex transactions, and would acquire high quality, well located assets 鈥渁t discounts to replacement cost to construct a diversified portfolio鈥�.
Asia II is targeting a gross internal rate of return of 20% and will be investing in China, Japan, India and Australia.
