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Blackstone raises US$20.5b property fund
US private equity firm Blackstone Group said on Wednesday that it has raised the world's largest real estate fund, amassing a total of US$20.5 billion to be invested in property assets around the world. Large buyout firms such as Blackstone have been attracting a lot of capital from investors seeking higher returns not available in public markets. The capital ready to be deployed has swollen to over US$2 trillion, according to data provider Prequin, driving up asset prices and deal making activity.
Blackstone said in a statement that the fund - named Blackstone Real Estate Partners IX (BREP IX) - has already made its first investment, which is the purchase of US industrial warehouse properties from Singapore-based logistics provider GLP for US$18.7 billion. The deal, in which BREP IX co-invested with other Blackstone funds, was announced in June this year and is expected to close in the coming weeks, the company said.
Blackstone is the world's largest alternative asset manager and one of the biggest property investors, with some US$154 billion in real estate assets under management. REUTERS