June 10, 2019 by Benjamin Paltiel
A BISNOW FEATURED SERIES:
New York Equity Raising
April 22, 2019 by Miriam Hall
War Chests: The Biggest Global Real Estate Funds Closed Since 2015
While competition for lucrative transactions has intensified, major funds continue securing substantial capital, with "more than $300B of dry powder, or undeployed capital, is sitting on the sidelines."
Competition for prime deals has intensified, yet major private equity firms have continued securing substantial capital for real estate ventures. Players like Blackstone Group, Brookfield, and Lone Star have successfully exceeded their fundraising targets, resulting in over $300 billion in undeployed capital awaiting deployment.
Blackstone Real Estate Group Fund VIII
Size: $15.8B | Closed: September 2015 | Manager: Blackstone Group
This opportunistic global fund acquired Strategic Hotels & Resorts for $6B in 2015, later sold to China's Anbang for approximately $6.5B.
Brookfield Strategic Real Estate Partners Fund III
Size: $15B | Closed: January 2019 | Manager: Brookfield Property Group
The fund significantly exceeded its $10B target. Brookfield Property CEO Brian Kingston stated: "You can't put $15B to work $50M at a time. We need large-scale transactions."
Major acquisitions included Forest City Realty Trust ($6.8B) and 666 Fifth Avenue ($1.1B).
Brookfield Strategic Real Estate Partners Fund II
Size: $9B | Closed: April 2016 | Manager: Brookfield Property Group
This predecessor fund closed $2B above its goal, drawing from 100 institutional investors including pension plans and sovereign wealth funds.
Blackstone Real Estate Partners Europe V
Size: €7.8B | Closed: June 2017 | Manager: Blackstone Group
Blackstone's largest European dedicated property fund previously acquired Finnish company Sponda for €1.76B.
Lone Star Fund XI
Size: $8B | Closed: February 2019 | Manager: Lone Star
This Dallas-based firm focuses on North America, Europe, Asia-Pacific, and Latin America, targeting family residential debt and corporate/consumer debt products.
Starwood Global Opportunity Fund XI
Size: $7.6B | Closed: March 2018 | Manager: Starwood Capital Group
This fund closed $1.6B above its $6B target. Notable deals included Milestone Apartments privatization ($1.3B) and a 30% Yotel stake ($250M).
Blackstone Real Estate Partners Asia II
Size: $7.1B | Closed: March 2018 | Manager: Blackstone Group
Blackstone co-head Ken Caplan noted this represented "the largest ever dedicated to real estate investing in Asia" providing "flexibility to pursue a range of opportunities."
Broad Street Real Estate Credit Partners III
Size: $6.4B | Closed: January 2018 | Manager: Goldman Sachs Merchant Banking Division
Focuses on senior and mezzanine loans ranging $100M-$500M, financing projects including San Jose construction loans and Dallas office development.
Lone Star Real Estate Fund V
Size: $5.9B | Closed: April 2016 | Manager: Lone Star Funds
Targeting debt and equity in commercial real estate across multiple regions, this fund exceeded its $5B goal with 90% already deployed at closing.
This feature was produced in collaboration between Bisnow Branded Content and RSM. Bisnow news staff was not involved in the production of this content.
More in this series:
April 29, 2019 by Miriam Hall
Bisnow Survey: It Is Getting Harder To Raise And Spend Equity
April 17, 2019 by Miriam Hall
All Raised Up And Nowhere To Go: Equity Funds Grow As Good Deals Shrink
April 4, 2019 by Miriam Hall