Blackstone Closes Largest Real Estate Fund Ever Raised
Blackstone Real Estate Partners IX has raised $20.5 billion in total capital commitments, with the largest investment placed in Global Logistic Properties’ U.S. industrial portfolio.
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Blackstone has closed its latest global real estate fund, Blackstone Real Estate Partners IX. At $20.5 billion in total capital commitments, the amount is the largest ever raised, surpassing the company’s previous fund of $16.4 billion, closed in April 2015.
Blackstone has also announced the first and largest investment—the purchase of Global Logistic Properties’ U.S. industrial assets valued at approximately $19 billion. The deal is expected to close in the coming weeks. The company is also investing in two other regional opportunistic funds in Europe and Asia—BREP Europe V (€7.9 billion or $8.7 billion) and BREP Asia II ($7.2 billion).
In a January interview with Commercial Property Executive, Mehgan Neenan, managing director & North American head of Non-Bank Financial Institutions at Fitch Group, pointed out that Blackstone has been taking advantage of attractive opportunities available at this late period in the economic cycle. After a more temperate year for CRE fund-raising—with $118 billion raised in 2018, down $14 billion from 2017—Neenan predicted this year to be even more challenging for investors.
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