Pension fund commits $350m to real estate, energy
The $65.5 billion Virginia Retirement System has committed $350 million to real estate and energy, divided between three managers.
VRS has committed $100 million to real estate through Blackstone Property Partners, an open-end core-plus fund managed by The Blackstone Group, and $250 million to energy through two separate managers, PetroCap and Sheridan Production Company.
BPP, Blackstone’s first core-plus open-end fund, is reportedly targeting a haul of around $5 billion to achieve 9–11 percent returns from office, retail, multifamily and industrial properties in major markets in North America. The fund has received a lot of interest from institutional investors of late, receiving $100 million from the Texas Permanent School Fund in September, as well as a