Blackstone Gearing Up to Seek 13 Bn Dollar for Global Real Estate Fund

Blackstone Gearing Up to Seek 13 Bn Dollar for Global Real Estate Fund

By SiliconIndia   |   Thursday, October 30, 2014
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Blackstone Group LP (BX.N), the world’s largest private equity investor in real estate, which derived 45 percent of its net profit from real estate in the first nine months of 2014, making real estate as its worthwhile business is getting ready to seek around $ 13 billion for its next flagship global real estate fund, in line with its precursor fund, according to people familiar with the development.After enjoying the phenomenal success in the real estate sector, the Black stone Group has started the preliminary conversations with potential investors about the new fund and supposes marketing documents to be prepared in the next few weeks, the people added.

From buying single-family homes in the United States to distressed commercial property in Europe, real estate sector has overtaken private equity as Blackstone’s most high-profile and worthwhile business.

The private equity company latest fund, Blackstone Real Estate Partners VII hoisted $13.4 billion in 2012, reported a net internal rate of 27 percent as of the end of September. As a consequence of its achievement, the head of real estate, Jonathan Gray is being observed as a potential successor to Chief Executive Stephan Schwarzman, co-founder of the firm, people aware of the matter a foresaid.

 Blackstone has sought to sensible expectations, telling potential investors that it will be very difficult for the new real estate fund to beat the high returns of Blackstone Real Estate Partners VII, the people added.

The sources spoke on condition of secrecy as Blackstone’s discussions with its investors are private. Blackstone refused to comment.

On Oct 16, Laurence Tosi, Black stone chief financial officer told that early next the firm would launch its eighth global real estate fund and he did not reveal the fundraising target. On the same day, Blackstone president, Tony James said that; he saw real estate investment opportunities in Europe and emerging markets particularly in Asia. He also stated that Blackstone would continue to sell its assets in the United States where there is rentals raise.

 

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