BlackRock Real Assets has now raised more than half of the $1.4bn (€1.25bn) target it set out to raise for its fifth Europe property fund.
The manager said, at first close, the value-add BlackRock Europe Property Fund V (EFV) has received $780m in capital commitments from 24 institutions globally.
In December last year, IPE Real Assets reported that BlackRock had begun raising capital for its fifth European opportunistic real estate fund and had attracted investment from the Florida State Board of Administration (SBA). It was also reported that Ohio Bureau of Workers Compensation was also considering an investment into the fund.
EFV’s target fundraising amount is almost double the €700m raised for the predecessor Europe Property Fund IV (EFIV) fund in April 2017.
BlackRock said EFV’s value-added strategy will largely be a continuation of the strategy implemented by the EFIV fund.
”The persistently widespread between core and non-core yields across Europe continues to validate our strategy of creating stabilised assets through repositioning, rebuilding and recapitalising.
”In a market environment such as this, some investors may be tempted to seek higher yields in peripheral markets at the expense of liquidity, the manager said.
Thomas Mueller, managing director, BlackRock Real Assets and portfolio manager for the fund said: “The high level of interest for EFV is a result of the strong performance of EFIV. Our value-add strategies’ success is predicated on a principle-based approach and strong off-market sourcing capabilities.
”We actively seek submarkets that are undergoing permanent structural change, predominantly in Germany, France, the Nordics, Ireland and Spain as well as selectively in the UK.”
