Blackstone Real Estate Partners Europe III was closed at $3.1 billion, exceeding its $2.5 billion fundraising target.
This is the second real estate fund Blackstone Group closed this year. In April, Blackstone Real Estate Partners VI was closed at $10.9 billion.
The $40 billion Pennsylvania Public School Employees' Retirement System, Harrisburg, and $12.6 billion New Mexico Public Employees' Retirement Association, Santa Fe, are investors in the fund.
Unlike other real estate funds, manager fees and expenses are not included in the commitment, but will be in addition to the $25 million commitment, according to information from the New Mexico Employees' Retirement Association. Pennsylvania committed up to €200 million ($281 million) to the fund in March 2008.