Investor demand has prompted Blackstone to extend its record-breaking European real estate fund by a further €1.5bn (£1.2bn).
Blackstone Real Estate Partners Europe IV closed in March this year, taking in €5.1bn in just six months from first to final close.
The fund is the largest dedicated European property vehicle ever raised.
It was also the private equity firm’s largest opportunistic real estate fund to date, with investors including the Texas Teacher Retirement System and the New York State Teachers’ Retirement System.
Following demand from investors, Blackstone has now re-opened the fund, which targets returns of 15-20%, to allow existing stakeholders to increase their investment.
The firm, widely regarded as a first mover, said it expected to close the current fundraise within a month. The additional funds will take the investment vehicle to a mammoth €6.6bn in total.
The swift deployment of capital by the 60-strong European real estate team – led by managing director and head of real estate in Europe Ken Caplan – has also prompted the tap issue.
In the six months since it closed the fund, Blackstone has deployed over two-thirds of the €5.1bn into assets and debt deals across the Continent and in the UK.
In London, investments include the £447.7m purchase of Max Property Group (which it bought in July), and a €1.1bn book of real estate loans from Nama.
Blackstone is the world’s largest real estate investment manager, with a total of $79bn (£47.6bn) under management globally.
In its third-quarter results, announced this week, the New York-headquartered firm announced a 46% hike in profit to $251m (£156m).
