Global investment giant Blackstone has raised €250 mln of investable capital in the first close of its new European Property Income strategy.
The firm said that the vehicle had been created to target eligible individual investors through its global Private Wealth Solutions (PWS) group, via partnerships with financial advisors.
Focusing on income-generating European real estate, the strategy will invest in the firm's high-conviction themes, including logistics, knowledge-centre office and residential housing. It will continue to raise money monthly and in perpetuity.
The strategy has already secured a high-quality logistics portfolio, located in key UK markets, as its first investment. The portfolio is fully leased on a long term basis, and benefits from positive fundamentals underpinned by strong e-commerce growth.
James Seppala, head of European real estate, said: 'The strong initial demand for this strategy is a testament to the quality of our global real estate platform.
'We are proud to continue to broaden investors’ access to institutional-quality real estate and build on the success of our US-focused real estate strategy for eligible individual investors.'
The new strategy is an expansion of Blackstone Real Estate’s growing, perpetual Core+ business, which has $85 bn (€73 bn) of assets under management (AUM) globally and builds on the strength of Blackstone’s US-focused real estate strategy for eligible individual investors.
Total perpetual capital AUM across Blackstone has grown to $169 bn, reflecting the firm’s ongoing evolution toward longer-dated capital, the fastest growing areas of the business today.
Joan Solotar, global head of PWS, said: 'Blackstone’s European Property Income strategy marks the next step in our continued commitment to delivering institutional quality solutions to eligible individual investors in Europe and Asia.
'This meaningful first close reflects the positive response and strong interest in private markets strategies that can complement investors’ existing portfolios.'
Blackstone’s European Property Income strategy is led by a board that underscores Blackstone’s commitment to diversity and inclusion. The board includes the following board members; Abhishek Agarwal, Diana Hoffman, Farhad Karim, Katia Panichi, James Seppala, Nathalie Charles, and Wesley LePatner.
