Blackstone Raises £1.7B For Lower-Risk Property Fund And Is Going Big On Logistics Again

Industrials under pressure due to increased e-commerce
Demand For Warehouse Space Will Push Rents Up Another 22% This Year, Prologis Reported.

Blackstone only started raising money for its first European core-plus property fund in August, but it has already raised £1.7B ($2.4B) for the vehicle.

The U.S. investment giant held a first close for Blackstone Property Partners Europe in the fourth quarter, according to the company’s results. U.S. pension fund CalPERS alone invested $750M in the fund, according to IPE Real Assets.

The fund will buy lower-risk and lower-return assets than Blackstone’s flagship opportunity funds.

The purchases the vehicle has made so far highlight that Blackstone is still a massive believer in the logistics sector.

The fund has bought a pan-European portfolio of 24 logistics assets from Goodman, which has a reported price of €600M (£532M). It is also reported to have bought back a 10% stake in Logicor, the pan-European logistics business it sold to China Investment Corp. for €12B last year. The firm’s results said CIC had mandated it to manage a 50% stake in Logicor.

A €230M European logistics joint venture with Delin Capital Asset Management in April last year was also flagged as a core-plus investment.

Blackstone’s results said it has $27B in core-plus assets under management. Chief Executive Stephen Schwarzman said it thinks that part of its business could grow to $100B.

Hear from Blackstone head of Europe James Seppala at Bisnow's London Capital Markets Update on 22 February at 7.30am at Merchant Taylors' Hall.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's London Newsletters
Related Stories

Discussing Strategic Capital Stack Structuring At Bisnow's Sept. 30 National Finance Event

GTIS Partners Rebrands As Brightshore Capital, Launches $250M Debt Platform

'Beyond A Routine Wobble': 10-Year Treasury Clears 5% Ahead Of Key Fed Meeting

Airbnb Launches $250M Fund To Invest In Affordable Housing

Judge Dismisses Suit Alleging Alexandria Misled Investors Over Portfolio Strength

Battersea Power Station Reveals Plans To Double Development Again

Canadian CRE Investors Shrug Off Trade War, Spend $9B On U.S. Assets

HPP, Blackstone Nab Extension On $1.1B Loan Tied To 2.2M SF Hollywood Portfolio

BMO Executive Named New CEO At CREFC

New Occupiers And More VC Money Fuel UK Life Sciences Rebirth

Traders Bet On A Rate Hike From The Fed After Inflation Report Climbs Higher

Canadian Firm Raises £680M For 6,000-Home UK BTR Push