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Blackstone plotting $5bn Asia fund

The firm is reportedly readying the launch of a new Asia private real estate fund with a target of at least $5bn.

Blackstone is preparing to launch its second Asia-focused private equity real estate investment fund with a capital raising target of at least $5 billion, according to a Reuters report.

A Blackstone spokesperson declined to comment on the fund.

According to the Reuters report, which quotes anonymous sources familiar with the fund plans, the vehicle is expected to be launched in the next 12 to 16 months.

News of the fund launch comes two years after the New York asset management giant’s record $5.08 billion haul for its maiden private real estate fund in Asia.

In December 2014, the firm closed Blackstone Real Estate Partners (BREP) at its hard cap, becoming the region’s largest private real estate investment fund at the time. According to the Reuters report, the firm has already invested more than 70 percent of the fund’s equity.

In September 2016 Blackstone made the largest exit by value from BREP Asia when it sold its majority stake in the SCP Company, a Chinese shopping mall owner, developer and operator, at an enterprise value of approximately $4 billion. The 96.55 percent interest was sold to a consortium of investors led by the Shenzhen-based property developer China Vanke.