The Blackstone Group Raises Over $45 Billion For Its Giant Real Estate Fund

Blackstone has closed on its biggest global property drawdown fund, which will pursue opportunistic transactions in rental housing, hotels, and data centers.

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According to a statement issued last week, the business obtained $US30.4 billion ($45.1 billion) in total capital commitments for the fund, known as Blackstone Real Estate Partners X. According to PitchBook statistics dating back to 2002, Blackstone's current fund is the largest of its kind.

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The real estate market has been under pressure in recent months as a result of a reduction in commercial-property financing as borrowing costs skyrocketed. At the same time, stocks of public real estate investment trusts have fallen as a result of market volatility and growing worries about certain property types such as offices.

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"Pullback with all types of financing will generate possibilities," Kathleen McCarthy, global co-head of Blackstone Real Estate, explained. "We can capitalize on the occasion for our investors by using our cash and skills."

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Blackstone's recent funding serves to solidify the private equity firm's position as a real estate market heavyweight. Blackstone's real estate arm, which began in 1991, today manages $US326 billion ($484 billion) in investor money.

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One of Blackstone's real estate vehicles has had a more difficult time in recent months. The Blackstone Real Estate Income Trust, which serves rich individuals, has seen an increase in withdrawal requests.

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Last year, the business began raising funds for the big property drawdown fund. According to the company, three of its strategies – worldwide, Asia, and Europe – now have a combined capital commitment of $US50 billion.

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The portfolio of Blackstone Real Estate is around 80% focused on buildings such as logistics, rental housing, hotels, lab offices, and data centers.

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