BlackRock Real Assets has raised €609m for its inaugural European real estate debt strategy.

The manager said its BlackRock European Real Estate Debt Fund (ERED) received capital commitments from over 20 different investors including public and private pension plans, insurance companies and financial institutions across EMEA and APAC.

IPE Real Assets understands BlackRock had a €500m fundraising target for ERED.

ERED invests in junior debt secured by commercial properties primarily located in Western Europe, the manager said, adding that the fund looks to invest in offices, retail, industrial, logistics, multifamily, student accommodation and hotels.

Robert Karnes, global head of real assets debt at BlackRock, said: “Increased regulation and tighter credit control has led to intense competition for senior debt. By comparison, relatively little capital has been raised for high yielding debt strategies.

“The challenge for alternative lenders is unlocking this investment opportunity and that is where the scale and reach of BlackRock’s Real Assets platform comes into its own. We are delighted with the response from investors towards this fund, it demonstrates the strength and resiliency of the strategy.”

Anne Valentine Andrews, global head of BlackRock Real Assets, said: “The European Real Estate Debt Fund aims to provide investors with stable net income, and has remained an ever-popular strategy with our clients.

“Given the scale of the BlackRock Real Estate platform, we have the privilege of direct access to multiple origination channels, leading to enhanced sourcing capabilities and differentiated deal flow.”

BlackRock, which already has a US real estate debt fund series, has 20 years of history investing in real estate debt.

To read the digital edition of the latest IPE Real Assets magazine click here.