BlackRock Raises £1B For Fund Targeting Living, Logistics And Data Centres

BlackRock has completed the fundraising for its sixth European value-add fund, which is looking to capitalise on the fall in real estate values over the past few years. 

The firm has raised €1.2B, or £1B,  of equity and co-investment capital for BlackRock Europe Property Fund VI. That is slightly less than the €1.3B it raised for the fund’s predecessor in 2020. 

The fund has committed about 70% of its capital to 11 investments in sectors spanning living, logistics and data centres. Its larger assets include Enclave, a 462-unit co-living scheme in London that is part of a wider £1B residential development joint venture with developer Outpost.

Deals also include MM50, an office-to-residential and purpose-built student accommodation development project in Madrid, a hyperscaler data centre development opportunity in Frankfurt and a portfolio of Swedish logistics properties.

The fund’s strategy involves recapitalising or repositioning assets to increase their value. 

“Re-up” capital from existing investors accounted for more than 60% of the equity raised for the fund, which also attracted 17 new limited partners.

BlackRock said it is seeing the best buying opportunity in a decade. 

“With over 70% of EFVI’s capital already committed, we have remained focused on sourcing unique assets that create value on entry,” Tatiana Tezel, BlackRock co-portfolio manager for EFVI, said in a statement. “This has enabled us to build a diversified pipeline of high-conviction investments, ensuring our clients benefit from a resilient, future-proofed portfolio.”

BlackRock’s real estate platform manages approximately $25B in assets globally.