NEW YORK CITY-The Blackstone Group LP has closed Blackstone Real Estate Partners VI with capital commitments totaling $10.9 billion. According to a company statement, this fund was the largest real estate opportunity fund ever raised. The firm has raised a total of nine real estate funds since inception, both funds for global investing and funds with a specific focus on Western Europe, with total capital commitments of $25.7 billion
In the past several years, Blackstone has completed a number of major transactions including Equity Office Properties, Hilton Hotels, CarrAmerica, Wyndham Hotels, Trizec Properties and Southern Cross/NHP. The group has completed more then 225 separate investments in North America and Europe with a total transaction value of approximately $132 billion since 1992. Most recently the group opened offices in Tokyo, Mumbai and Hong Kong to expand Blackstone’s real estate business in Asia.
Jonathan Gray, senior managing director and New York City-based co-head of Blackstone’s real estate group says that “we believe there should be attractive investment opportunities for this capital given the market dislocation that exists today.” Previous funds include: Blackstone Real Estate Partners V, which closed at $5.25 billion; Blackstone Real Estate Partners IV, which totaled $2.05 billion, substantially exceeding its initial target of $1.5 billion.
Chad Pike, senior managing director and London-based co-head of Blackstone’s real estate group adds that “with this fund we will be able to enter new markets and expand Blackstone’s global investment activities.” A Blackstone spokesperson tells GlobeSt.com that “right now we are not commenting beyond the language of the release.”