US asset management giant Blackstone has announced the final close of its most recent real estate debt fund, Blackstone Real Estate Debt Strategies IV (BREDS IV). BREDS IV has $8 bn (€7 bn) of total capital commitments, almost double the amount raised for its predecessor in 2016 and making it the largest real estate credit fund ever raised.
BREDS IV will have flexible capital to lend around the globe, and will deploy a variety of investment strategies, including lending, liquid securities, structured solutions to financial institutions, and corporate credit. The fund will target net returns of between 9% and 11%.
Blackstone Real Estate Debt Strategies has $26 bn of assets under management.
’This fundraise reflects the significant demand for capital in the real estate debt markets and the continued confidence in our business from our limited partners,’ said Jonathan Pollack, global head of the Blackstone Real Estate Debt Strategies. ‘The breadth and scale of our global real estate platform allow us to see a wide range of opportunities while bringing Blackstone’s expertise to every investment decision. We look forward to providing creative and comprehensive financing solutions to our borrowers.’
The announcement comes a week after Blackstone emerged as the preferred bidder for Prologis’ Platform portfolio for £480 mln (€524 mln).
The deal - the largest UK warehouse investment sale on record – involves a number of non-core assets acquired as part of Prologis’ $13 bn acquisition of Liberty Property Trust earlier this year for $12.6 bn in an all-share deal.
The Platform annual rental income is £25 mln and includes tenants Tesco and Srewfix. The properties are mainly standalone stores rather than parks.
