New Mexico SIC mulls $300m of commitments to Blackstone, Bain Capital real estate funds

The New Mexico State Investment Council (SIC) is considering $300 million of investments to two real estate funds managed by Blackstone Real Estate and Bain Capital.

On June 27, New Mexico SIC staff, in consultation with Townsend, recommended commitments of up to $150 million each to Blackstone Real Estate Partners Europe VII (BREP Europe VII) and Bain Capital Real Estate Fund III.

BREP Europe VII is a closed-end opportunistic commingled fund with a $9.5 billion fundraising target. The investment vehicle will broadly follow the same investment strategy as its predecessor European funds, which include targeting larger, complex situations where competition is limited and BREP’s ability to move quickly is a competitive advantage. Blackstone aims to adhere to a “buy-fix-sell” investment strategy — namely, establish positions in attractive assets at a compelling basis; triage the properties/businesses and resolve issues to unlock value; and identify and execute exit