Blackstone Closes Largest Real Estate Opportunity Fund Ever

Alessia Pirolo — Wed, 10 Oct 2012 12:00:16 -0400

Blackstone has closed the largest real estate opportunity fund ever, Blackstone Real Estate Partners VII, which over the past 13 months raised $13.3 billion from more than 250 investors globally. According to Blackstone, the largest category of investor in the fund is U.S. public pension plans, funding the retirements of state and local employees. Approximately 35 percent of the fund’s capital has already been committed or invested in a wide variety of asset classes and geographies.

Jonathan Gray.

“We are extremely appreciative to our investors for their strong support of BREP VII,” said Jonathan Gray, the global head of Blackstone’s real estate business. “We believe the current environment provides a highly attractive opportunity to generate favorable returns for them. In addition, we think that the experience and global reach of our team uniquely positions us to capitalize on this opportunity.”

Most recently, Blackstone Real Estate Partners VII agreed to buy a portfolio of 36 U.S. shopping centers, most anchored by grocery stores, from Equity One for $473.1 million.

Blackstone’s real estate unit manages more than $50 billion in equity as of the end of the third quarter.

apirolo@observer.com

The Commercial Observer » Blackstone Closes Largest Real Estate Opportunity Fund Ever

Blackstone Closes Largest Real Estate Opportunity Fund Ever