The firm is looking to deploy most of the $915m raised for the vehicle into deals averaging $10m in size.
The joint venture marks the first time the firm has set up a direct investment vehicle with a single institutional investor.
The New York- and London-based manager has reduced the fund’s target deal size as a reflection of where it sees distress emerging.
The transaction is the third in the New York-based firm’s minority stakes strategy investing in real estate managers.
The venture between the US manager and the Netherlands’ biggest pension has made an initial investment in Leiden, Netherlands.
Hundreds of real estate managers have reported assets are at financial risk owing to new environment regulations.
The firm remains interested in the rest of the IFC Seoul complex, with the acquisition setting 'the tone' for its future Korean investments.
With a target of $8bn, Carlyle Realty Partners X is shaping up to be one of 2024’s largest fundraises.
While others said no to moving to Asia, the relocation was one of the major turning points for the executive's 40-year real estate career.
The largest US pension fund eyes non-core funds for its next round of allocation to the asset class.