Blackstone builds US$7.1bn war chest

Photo Roman Tiraspolsky
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THE US$111 billion Blackstone has closed its second Asian opportunistic real estate fund, receiving $7.1 billion of capital commitments. At the time, it has entered into a binding agreement to acquire ASX-listed Investa Office Fund.

The Blackstone Real Estate Partners Asia II (BREP Asia II) has reached its hard cap.

“We are eager to build on the success of our first Asia real estate fund and believe we are well-positioned to capitalize on the continued strong growth the region is experiencing,” Blackstone Real Estate global co-head Kathleen McCarthy said.

Co-head Ken Caplan said the size of this fund – the largest ever dedicated to real estate investing in Asia – gives the group flexibility to pursue a range of opportunities and commit capital with speed and scale.

The latest close comes as Blackstone enters into a binding agreement to acquire IOF for A$3.08 billion.

IOF has total assets under management of A$4.0 billion with 20 office buildings in core CBD markets across Australia.

Meanwhile Blackstone has also closed its first Asian private equity fund, which will have a minimum US$3.8 billion to invest across Asia and Australia.

The Blackstone Capital Partners Asia (BCP Asia) fund has raised approximately US$2.3 billion of capital commitments. Coupled with associated commitments from Blackstone’s global buyout fund, gives the firm a minimum of $3.8 billion of equity to invest in Asia.

BCP Asia will focus on Australia, China, India, Southeast Asia and South Korea and target high-end manufacturing and healthcare assets.

Australian Property Journal