BlackRock is planning a $1.5bn (β¬1.25bn) fundraise for its US real estate debt fund, according to an investor.
Florida State Board of Administration (SBA) said it has approved a $200m (β¬166.7m) commitment to BlackRock US CRE Debt Fund.
The value-add fund will mostly be providing junior debt, but will also consider some whole loans and commercial real estate securities.
Florida SBA told ΒιΆΉΣ³» Real Assets that there is an estimated $2trn of real estate debt that will mature over the next five years, providing refinancing opportunities.
βAs credit standards continue to tighten, we see a limited supply of first mortgage by traditional lenders. Participation by lenders in the mezzanine market also continues to decline as over-levered high yield debt funds and mortgage REITs deal with margin calls and credit issues,β the pension fund said.
Florida SBA said it has also made a $100m commitment into the Asia Value Partners V sidecar which invests in logistics development projects in Japan. The pension fundβs capital is part of the $265m co-investment capital raised by CBRE Global Investors in March.
Florida SBA has made a $100m commitment to Principal Digital Real Estate Fund, β digital real estate fund which seeks a $500m capital raise.
To read the digital edition of the latest ΒιΆΉΣ³» Real Assets magazine click here.
