Blackstone’s real estate investments for its Europe Fund IV have produced a net IRR of 19% to date, according to a source.
The real estate manager has completed 34 investments so far for the fund, for which it seeks to raise an additional $2bn (€1.6bn).
Blackstone, which had an initial capital raise for Europe IV of $4.5bn, has now deployed $2.9bn.
The fund is targeting high-quality, large assets with complication situations and limited competition.
It is also buying existing properties or debt at significant discounts.
The real estate manager has spread its investments for the fund across a range of markets and property types.
Around 25% has been invested in the UK, with 20% in Spain, 16% in Italy and 14% in Germany.
In France, 10% has been invested, while the Netherlands and Ireland account for 6% and 4%, respectively.
Around 3% of the fund is invested in Turkey and 2% in Poland.
Most of the capital has been placed in the main property types, with some invested in speciality assets.
So far, the fund is 37% invested in office, 18% industrial, 15% retail, 13% single-family and 7% hotels.
Apartments and student housing make up the remainder.
Investments in the initial capital raise included $250m from the Teacher Retirement System of Texas, $100m from the Pennsylvania Public School Employees Retirement System and $75m each from the the Texas Permanent School Fund and the University of Texas Investment Management Company.
Blackstone is coming to market with its next global opportunity fund, seeking a total equity raise of $15bn for its Blackstone Real Estate Partners Fund VIII.
The company declined to comment on the future size of the fund, which will invest in the US and Canada.
A private placement memorandum will be sent to interested parties next month.
Leverage on the new opportunity fund will be 60-70%, with a 20% gross IRR targeted.
Source: IPE Real Estate