BlackRock has raised €774m at the first close of its Europe Property Fund VI value-add real estate fund.
BlackRock said the fund will target “high-quality assets aligning with long-term ‘mega forces’ shaping the economy, including demographic shifts, digital disruption, the transition to a low-carbon economy and net zero built environment”, in European countries such as the UK, France, Germany and Spain.
The SFDR Article 8 fund will focus on opportunities in the student housing and residential sector in addition to logistics and data centres in under-supplied markets.
Capital was provided by a diverse set of global institutional investors, including new clients and LPs from prior vintages.
Anne Valentine Andrews, global head of real estate and infrastructure at BlackRock, said: “The European value-add series is a vital component of our $28bn global private equity real estate business. Despite continued market uncertainty, the window of opportunity is opening for real estate investors. This requires getting granular within asset classes and harnessing the structural mega forces driving future demand and requirements for real estate. We are pleased to partner with our clients in this latest vintage, delivering local market knowledge and personalised service from BlackRock.”
Thomas Mueller-Borja, global CIO of value-add real estate and co-portfolio manager of EFVI, added: “We are delighted to partner with our clients, many of whom have committed to prior EF vintages. Cyclical and structural factors are creating what we believe is the best real estate buying opportunity since 2008. It is crucial to remain disciplined and selective in more volatile times, and we continue to apply the research-led, principle-based investment approach which has consistently guided our decision-making over the years.”
Tatiana Tezel, co-portfolio manager of EFVI, said: “We continue to see attractive opportunities in the European real estate market, particularly as inflation and interest rates stabilize. We have already committed €289m of equity to a range of exciting projects, all of which the team sourced off-market and negotiated attractive entry prices on. We continue to find new opportunities and have developed a diverse pipeline of investments under exclusivity. We’re focusing on fast-growing locations and resilient sectors and developing high quality real estate that meets tenant requirements now and in the future.”
