Iowa Public Employees selects Blackstone, Principal for real estate debt
By Barry B. Burr | February 28, 2013 2:54 pm
Iowa Public Employees' Retirement System, Des Moines, committed $150 million to Blackstone Real Estate Debt Strategies II, managed by Blackstone Real Estate Special Situations Advisors, and $50 million to Principal Real Estate Debt Fund,managed by Principal Real Estate Investors, according to Karl Koch, chief investment officer.
The commitments by the $24.2 billion Iowa PERS are pending legal negotiations and on-site due diligence. In addition, the Principal commitment is contingent on the Principal fund raising at least $250 million in commitments by June 30.
“In the event the Principal fund does not raise the minimum $250 million by that date, the prospects of Principal doing so in the near future will be evaluated, and if necessary an alternative recommendation for the $50 million commitment will be provided to the board,” Mr. Koch said in a statement.
Iowa PERS issued an RFP last August for limited partnerships in privately traded commercial real estate debt investments.
It is the pension fund's first allocation to the area.
Wilshire Associates, Iowa PERS investment consultant, assisted in the search.