Blackstone's global real estate fund to close at $20bn in December

Related Asset Managers

Blackstone is poised to raise $20bn (€17.6bn) for its latest global real estate fund before the end of the year, according to one of its investors.

It would make Blackstone Real Estate Partners (BREP) IX the largest-ever property fund raised by the company and is greater than the previously reported target of $18bn.

According to a board meeting report from the New Mexico State Investment Council, Blackstone plans to hold a single close in December.

Blackstone stated the $20bn target during a presentation made to New Mexico SIC this week.

Blackstone declined a request for comment.

New Mexico SIC, which manages New Mexico’s $24bn permanent endowment fund, approved a $100m commitment to the fund this week.

A spokesman for the institution said: “Blackstone is a manager that has been a very strong performer for us in the past and with a great deal of success.”

BPEP IX will look to invest 60% of its capital in the US and Canada, and the rest in Europe and Asia-Pacific.

The fund will be able to co-invest alongside its existing regional funds, BREP Europe V and BREP Asia II.

It will target mid-teen net returns. Financial leverage will be capped at 85%, although New Mexico SIC said Blackstone was likely to keep the loan-to-value ratio below 70%.

The fund has four main investment themes and will seek to capitalise on the growth of global logistics, ‘innovation cities’, global leisure and travel, and shortages in rental housing.

Related images

  • US Real Estate

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2496

    Asset class: Commodities.
    Asset region: World.
    Size: CHF 100 – 150 m.
    Closing date: 2018-12-12.

  • QN-2498

    Asset class: Fixed Income Investment Grade.
    Asset region: Global Developed Markets.
    Size: $50m.
    Closing date: 2019-01-07.

  • DS-2499

    Closing date: 2019-01-02.

Begin Your Search Now