Blackstone makes second Dutch foray

The Blackstone Group has purchased a portfolio of offices in the Netherlands from CBRE Global Investors in a rare investment in the country.

The New York-based private equity and real estate giant has acquired Cross Towers in Amsterdam, Weenatoren and 200 Weena in Rotterdam and the Forum, Sirius and Orion in The Hague from CBRE’s Dutch Office Fund for a price believed to be €165 million. Neither party would comment on the price.

Blackstone made the investment on behalf of its latest European fund, Blackstone Real Estate Partners (BREP) Europe IV, and its latest global fund, BREP VII. BREP Europe IV is still in fundraising and has attracted $3.7 billion in equity commitments so far, while BREP VII closed on $13.3 billion – the most for any private real estate fund – last year. Typically, the firm invests 80 percent of the equity of a given deal from its regional fund and 20 percent from its global fund. 

The Netherlands has not been widely regarded as a popular investment market for real estate investment managers in recent years, and its office markets in particular have suffered in terms of lowering occupation and rental levels. However, Blackstone’s investment serves as an early indicator of potential upside. In fact, it is the second Dutch deal by the firm’s real estate division this year. In October, the firm acquired an €87 million logistics portfolio of six assets from a company called Syntrus Achmea.