BlackRock Real Assets has secured €280 mln in commitments at the first close of its new Eurozone core property fund, which will target high-quality, income-producing investments located in the Eurozone and Euro-pegged countries.
According to BlackRock, the fund will invest primarily in offices, retail, and logistics, with selective exposure to the alternatives sector.
'Eurozone commercial real estate is in the early stages of the occupational cycle, especially when compared to previous cycles, and we believe that improving economic conditions will continue to drive property performance across the region,' said Ian Williamson, director and portfolio manager of the fund at BlackRock.
'Our team has significant experience in commercial real estate across the Continent, and will benefit from the investment sourcing capabilities of our on-the-ground teams in all our target markets. Our core investment approach is looking to provide a stable income return to investors from secure and enhanced income.'
The fund's investment pipeline includes office properties in Paris, Munich and Hamburg, as well as retail properties in Copenhagen. BlackRock said the fund would implement a multi-strategy approach targeting reversionary assets, low vacancy assets, and assets in transitional markets, to seek to capitalise on emerging trends.
'BlackRock’s global rebalancing survey suggests that institutional investors are rebalancing their portfolios, and shifting allocations to more illiquid assets, in particular, real assets, which aim to generate high potential returns and can also generate income,' concluded Marcus Sperber, BlackRock's managing director and global head of real estate.
