Blackstone has announced the final close of its latest global real estate fund Blackstone Real Estate Partners X (BREP X). BREP X has $30.4 billion of total capital commitments, which is the largest real estate or private equity drawdown fund ever raised. In total, Blackstone’s 3 opportunistic strategies (Global, Asia, Europe) now have $50 billion of capital commitments.
Blackstone has delivered a 16% net IRR on over $100 billion of committed capital in the BREP global funds over more than 30 years. And anticipating changing macro trends, Blackstone Real Estate has been shifting its portfolio away from assets facing headwinds like traditional office and malls and is about 80% concentrated in logistics, rental housing, hospitality, lab office and data centers. BREP X’s scale and discretionary capital position the company well to capitalize on opportunities in its highest conviction sectors across the globe.
In July 2022, Blackstone said it was close to finalizing one of the largest real estate investment funds in history, referring to BREP X. At the time, regulatory filings showed that the company had raised $24.1 billion in the previous three months. Blackstone essentially beat its own record as the fund’s predecessor Blackstone Real Estate Partners IX raised $20.5 billion in 2019.
Blackstone’s overall real estate portfolio is over $290 billion and it invested heavily in warehouses, multifamily, rental housing, hospitality, life sciences, and the private takeovers of REITs. For example, Extended Stay America and its paired-share REIT ESH Hospitality in June 2021 announced the completion of their previously announced acquisition by funds managed by Blackstone Real Estate Partners and Starwood Capital Group for $20.50 per paired share in cash in a transaction valued at approximately $6 billion.
KEY QUOTES:
“In every market cycle we have delivered for our customers by using our insights and advantages to concentrate their capital in investments poised to deliver strong returns. This record-setting fundraise reflects the trust we have built with our limited partners, and we are grateful for their continued confidence as we enter a compelling investment environment.”
— Kathleen McCarthy, Global Co-Head of Blackstone Real Estate
“We believe the current market is tailor-made for Blackstone Real Estate. We have made some of our best investments in periods characterized by the market volatility and dislocation we see today. Furthermore, sector selection has never been more critical as we witness the bifurcation of performance within real estate, which is favoring our high-conviction themes.”
— Ken Caplan, Global Co-Head of Blackstone Real Estate
