The Blackstone Group Inc. has raised a total of almost $1.9 billion for a set of Asia-focussed real estate funds, as it continues to grow its pile of capital to make property investments in the region.
The world’s biggest manager of alternative assets scooped up the capital for five so-called core-plus real estate funds, according to filings with the US Securities and Exchange Commission.
It mobilised $1.367 billion for Blackstone Property Partners Asia and the remaining for four feeder funds, the filings show.
Blackstone Property Partners funds are part of the PE firm’s core-plus real estate investment strategies. These funds differ from the real estate opportunistic funds housed under Blackstone Real Estate Partners. The PE firm also raises debt funds and exchange-traded funds for real estate investments.
The buyout giant had launched the core-plus real estate funds in 2013 to invest in stable assets in prime markets across North America, Europe and Asia. These funds invest with a more modest risk profile and lower leverage.
Blackstone says that the core-plus funds generate returns through both current cash flows and value appreciation over the long term and that these funds invest in assets that require relatively limited management.
The fresh fundraising comes just months after Blackstone raised $20.5 billion for the largest global real estate fund, Blackstone Real Estate Partners IX, in September last year. In 2018, the PE firm had also mopped up $7.1 billion for the Blackstone Real Estate Partners Asia II fund, its second property fund for the continent.
Blackstone is one of the biggest real estate investors worldwide and has $160 billion of assets under management. It is also one of the biggest investors in India's property market, and has committed almost $6 billion over the past eight years. The PE firm's India investments have been mostly in office and retail real estate segments.
Blackstone’s recent India real estate activities include buying commercial projects from Mumbai-based Indiabulls Real Estate Ltd and forming an investment platform with Mumbai-based Hiranandani Group to invest in warehousing assets.