US asset management giant Blackstone is to increase the size of its European real estate fund by €1.5 bn to €6.6 bn, some seven months after completing the fundraising for the vehicle.
US asset management giant Blackstone is to increase the size of its European real estate fund by €1.5 bn to €6.6 bn, some seven months after completing the fundraising for the vehicle.
In a conference call with reporters last week to detail the firm's Q3 results, president and COO Tony James said Blackstone Real Estate Partners Europe IV would be reopened to existing investors to raise the additional amount. The fund closed with commitments of €5.1 bn in March.
‘Given demand from our limited partners, we are taking the unusual step of reopening and expanding this fund by $2 bn,’ James said. ‘There’s plenty of demand from existing investors to take all of the increment. I don’t anticipate it extending the investment period or materially changing.’
Around two-thirds of the fund, which focuses on buying distressed real estate assets in the UK and Continental Europe, has already been spent.
New York-based Blackstone has been a voracious acquirer of real estate in the UK and Europe in recent months. It emerged as one of the biggest winners in PropertyEU's latest ranking of Top 100 Investors in Europe.
The firm’s advance in Europe stems from a combination of acquiring loan portfolios, setting up a European logistics arm and snapping up a number of ‘big ticket’ deals.
Blackstone raised $13 bn of capital globally in the third quarter of 2014, bringing total assets under management to $284 bn, up 15% year-on-year.