Blackstone Closes Largest Real Estate Fund Ever Raised

Blackstone Real Estate Partners IX has raised $20.5 billion in total capital commitments, with the largest investment placed in Global Logistic Properties’ U.S. industrial portfolio.
Image via Pixabay

Blackstone has closed its latest global real estate fund, Blackstone Real Estate Partners IX. At $20.5 billion in total capital commitments, the amount is the largest ever raised, surpassing the company’s previous fund of $16.4 billion, closed in April 2015.

Blackstone has also announced the first and largest investment—the purchase of Global Logistic Properties’ U.S. industrial assets valued at approximately $19 billion. The deal is expected to close in the coming weeks. The company is also investing in two other regional opportunistic funds in Europe and Asia—BREP Europe V (€7.9 billion or $8.7 billion) and BREP Asia II ($7.2 billion).  

In a January interview with Commercial Property Executive, Mehgan Neenan, managing director & North American head of Non-Bank Financial Institutions at Fitch Group, pointed out that Blackstone has been taking advantage of attractive opportunities available at this late period in the economic cycle. After a more temperate year for CRE fund-raising—with $118 billion raised in 2018, down $14 billion from 2017—Neenan predicted this year to be even more challenging for investors.