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New European real estate fund planned by asset-management giant 

Funds are being gathered for a new European property pool by Blackstone LP, according to a report published by Bloomberg Business.

I have decided to look further into this news and find out more about previous funds and the areas of the region that Blackstone intends to invest in.

Previous successes

Last year the firm raised €6.6 billion euros for its fourth European real estate fund, appropriately entitled ‘Blackstone Real Estate Partners Europe IV’. According to Blackstone, two-thirds of the fund have been invested – 2014 being the company’s busiest year for European property deals.

Tony James, the president and CEO of Blackstone LP, said

“In real estate we’re coming to the end of a couple of funds that are chunky funds”

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This statement implies that the size of the funds is larger than normal – good news for Blackstone and its investors.

Blackstone also is raising a new real estate mezzanine-debt fund, according to Mr. James.

Regional investments

According to Jon Gray, Blackstone LP’s head of real estate, more investment in Southern Europe is planned. Deals include warehouses, office buildings and apartments, as well as commercial- and residential-property loans.

Nordic and Baltic regions as well as Germany have also seen investment. This comes from a deal made in July between Blackstone LP and Obligo Investment Management AS in an all-cash deal.

The deal saw Blackstone LP acquire shopping centres, hotels and apartments.

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Commenting on the Nordic deal, Blackstone’s head of European Acquisitions James Seppala said:

“Following the acquisition of the real estate portfolio managed by Obligo, we will have a real estate portfolio in the Nordics which fits our investment strategy well.”

Blackstone’s investments in Europe clearly indicate efforts on the company’s behalf to establish a clear foothold in the region.

Avner Motaev

Avner Motaev is the director of Mobile2Business, a provider of telecommunications solutions to businesses in Austria. Mobile2Business is an official business partner of T-Mobile.

Published in Avner Motaev Investment