BlackRock has secured €1.2bn in capital commitments for its sixth European value-add real estate fund.
BlackRock Europe Property Fund VI (EFVI) secured equity and co-invest capital commitments, with over 60% coming from re-ups by existing global limited partners and 17 new investors to the series.
The previous fund in the series closed in May 2020 after achieving its hard cap target of €1.29bn. It also raised an additional €200m for co-investments, giving the manager a total of €1.487bn for that strategy at the time.
BlackRock said EFVI has already committed approximately 70% of its capital across 11 investments in the UK, France, Germany, the Nordics and Spain, covering sectors such as living, logistics and data centres.
Flagship assets include MM50, an office-to-residential and student accommodation development in Madrid; Enclave, a studio-living scheme in London; a hyperscaler data centre development in Frankfurt; and a portfolio of Swedish logistics properties.
Thomas Mueller-Borja, global co-head of real estate and co-portfolio manager of EFVI at BlackRock, said: “Following a period of correction in global real estate, we believe today’s market represents one of the best buying opportunities for clients in over a decade.
“With EFVI, we have developed a solution that enables our clients to access this market and increase their exposure to European real estate at a time when entry points and structural trends provide attractive upside potential.
“Against the backdrop of a challenging fundraising environment, the final close of our sixth vintage marks a significant milestone for our established European value-add programme and continues to build momentum as we look ahead to further expanding the series for our clients.”
Tatiana Tezel, co-portfolio manager for EFVI at BlackRock, said: “We are incredibly proud of the exceptional investor appetite for EFVI from both existing and new clients alike. Our European value-add platform continues to grow from strength to strength, which is testament to our disciplined, research-led approach that’s underpinned by our guiding principles for delivering value-add returns for clients.
“With over 70% of EFVI’s capital already committed, we have remained focused on sourcing unique assets that create value on entry. This has enabled us to build a diversified pipeline of high-conviction investments, ensuring our clients benefit from a resilient, future-proofed portfolio.”
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