BLACKSTONE has closed on its largest global property drawdown fund, targeting opportunistic deals across sectors such as rental housing, hospitality and data centres.
The company secured US$30.4 billion of total capital commitments for the fund, called Blackstone Real Estate Partners X, according to a statement on Tuesday (Apr 11). Blackstone’s latest fund is the largest of that type, PitchBook data going back to 2002 showed.
The real estate market has come under pressure over the past year due to a pullback across commercial-property lending, as borrowing costs skyrocketed. At the same time, the stocks of public real estate investment trusts have also suffered amid uncertainty in the market and increasing concerns about certain property types such as offices.
“Pullback with all forms of capital will create opportunities,” said Kathleen McCarthy, global co-head of Blackstone Real Estate. “We can use our capital and expertise to capitalise on the moment for our investors.”
Blackstone’s latest fundraising helps cement the private equity firm’s status as a powerhouse in the real estate market. Its real estate business, which started in 1991, now has US$326 billion of investor capital under management.
One of Blackstone’s real estate vehicles has faced a rougher past few months. Blackstone Real Estate Income Trust, which caters to wealthy individuals, has been facing heightened withdrawal requests recently.
The firm started to raise money for the large property drawdown fund last year. Three of its strategies – global, Asia and Europe – now have a total of US$50 billion in capital commitments, the firm said.
Blackstone Real Estate’s portfolio is about 80 per cent concentrated in properties such as logistics, rental housing, hospitality, lab offices and data centres. BLOOMBERG
Source: www.businesstimes.com.sg
