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BLG closes on €152m for Turkish fund

The private equity real estate firm received heavy support from US investors who committed 70 percent of the capital for its second fund.

Istanbul-based private equity real estate manager, BLG Capital, has finished fundraising for its second property fund, having garnered €152 million of equity.

The firm, which focuses on opportunistic real estate transactions in Turkey, received approximately 70 percent of its equity commitments from US institutions with the balance mainly from Europe and the Middle East. The investor base comprises endowments, pension funds, insurance companies, foundations, and fund of funds.

BLG has already made three investments using capital from the fund, the largest being its co-investment with Turkish conglomerate Dogus Holding in Galataport – the redevelopment of Istanbul’s longest waterfront site. The development is expected to add a prime high street shopping district, Grade A office space, the new luxury Peninsula Hotel Istanbul, and other leisure attractions.

The two other investments made by BLG are: VK 108, a luxury residential high-rise development in central Istanbul; and Bodrum, a mixed-use hotel and residential development on a seafront site.

BLG’s predecessor fund, BLG Turkish Real Estate Fund I, raised €142 million in 2012 and has been fully deployed across six assets.

Lazard acted as the placement agent for BLG, while Macfarlanes was the fund’s legal counsel.