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Blackstone sets record with €5.1bn Europe fund

The New York-based firm has closed its fourth European opportunity real estate fund - the largest of its type ever raised in the region.

The Blackstone Group has closed its fourth real estate fund in Europe with a total of €5.1 billion ($7 billion) of commitments making it the largest ever opportunistic property fund raised in the region.

Ken Caplan, head of European Real Estate at Blackstone, said in a statement on the closing: “We are hugely grateful to our investors for their continued support. The fact that we raised €5 billion in just six months from first to final close is testament to the ability of Blackstone’s 60-strong team dedicated to investing in European Real Estate. We have a successful 17 year track record in Europe and are excited about the opportunities to continue executing investments across Europe, delivering unparalleled speed and certainty to sellers and the expertise to add value to our properties.”

The final figure for Blackstone Real Estate Partners (BREP) Europe IV cemented a record that was already achieved by January this year when the total reached $5.52 billion (€4.1 billion) at a second closing, breaking a record already held by Blackstone – €3.1 billion for BREP Europe III, the predecessor vehicle that it closed in June 2009.

The amount is bound to skew fundraising statistics for European real estate opportunistic and value added funds in 2014 given it is three times larger than the biggest fund raised by any other firm this fundraising cycle. Indeed, it is almost as much equity as the combined total raised in the last 18 months by the four other most successful firms in the region; Patron Capital, Perella Weinberg Partners, Orion Capital Managers and Tristan Capital.