Blackstone’s new real estate fund pulls in over US$24b in commitments

BUYOUT giant Blackstone has secured commitments worth US$24.1 billion for its latest real estate fund, it said in a regulatory filing on Wednesday (Jul 20).

The size of the new fund, called Blackstone Real Estate Partners X, could go up to US$30.3 billion when it is finalised, The Wall Street Journal reported, citing sources.

The New York-based private-equity behemoth has been ramping up its bets on companies in the real estate space. In April, it agreed to buy real estate investment trust PS Business Parks for US$7.6 billion, including debt.

The company has also struck multi-billion dollar deals for student housing real estate investment trust (Reit), American Campus Communities, and multi-family housing Reit, Preferred Apartment Communities.

Even as recession fears have put the brakes on global deal-making, buyout funds have been somewhat of a bright spot.

Such funds have generated transactions worth US$674 billion in the first half of the year, going by data from Dealogic.

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Blackstone will invest US$300 million of its own capital in the latest fund, the Journal reported.

At US$30.3 billion, the new fund would be 48 per cent bigger than Blackstone Real Estate Partners IX, which closed in 2019.

REUTERS