BlackRock Private Markets has raised €774m in a first close for its latest value-add real estate fund.
The capital has been provided by a range of institutional investors, including new clients and investors from previous vintages.
Europe Property Fund VI (EFVI) will invest in “the most liquid markets in Europe”, such as the UK, France, Germany, the Nordics and Spain, BlackRock said, adding that it will target high-quality assets aligned with the structural “mega forces” driving the economy and future occupier demand.
The fund manager said these mega forces include demographic shifts, digital disruption, and the transition to a low-carbon economy and a net-zero built environment.
BlackRock sources said the fund will focus on the need to develop student housing and new residential units, and to provide “business-critical” logistics and data centre premises in under-supplied markets.
EFVI is classified as an Article 8 fund under the EU’s Sustainable Disclosure Finance Regulation and aims to create future-proof assets with strong ESG credentials, including high-energy efficiency and pathways to net-zero emissions.
Business plans will focus on recapitalising, repositioning and rebuilding assets. EFVI has so far committed €289m of equity across four investments: two logistics assets in Sweden, and multi-family assets and student housing in the UK.
Anne Valentine Andrews, global head of real estate and infrastructure at BlackRock, said: “The European Value-Add series is a vital component of our US$28bn (€26bn) global private equity real estate business. Despite continued market uncertainty, the window of opportunity is opening for real estate investors. This requires getting granular within asset classes and harnessing the structural mega forces driving future demand and requirements for real estate.”
Thomas Mueller-Borja, global CIO of value-add real estate and co-portfolio manager of EFVI, added: “We are delighted to partner with our clients, many of whom have committed to prior EF vintages. Cyclical and structural factors are creating what we believe is the best real estate buying opportunity since 2008.”
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