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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.
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