New York: January 24, 2002: The Blackstone Group today announced the final closing of its Blackstone Real Estate Partners International fund (BREP International), the fourth real estate fund raised by the New York-based private investment bank. Commitments total €800 million, substantially exceeding the fund’s initial target of €600 million, and came from a wide range of corporate and public pension funds, financial institutions and high net worth individuals from both Europe and the United States.
Blackstone’s previous real estate fund Blackstone Real Estate Partners III (BREP III) closed in 1999 with commitments of approximately $1.5 billion.
“We are extremely gratified by the support of our partners that has resulted in this successful fundraising effort” said Stephen A. Schwarzman, President and CEO of The Blackstone Group. He added, “Although we have been active investors in European real estate for many years, BREP International represents a long-term, global commitment to the strategic expansion of our real estate platform.”
BREP International co-invests on a 60-40 ratio with BREP III creating a total pool of about €1.35 billion (approximately $1.2 billion) of equity capital and representing one of the largest such funds focused on investments in real estate assets and operating companies in Western Europe. The primary elements of the fund’s investment strategy are office repositionings, hotel acquisitions/branding and warehouse acquisitions and developments. Based in London, the real estate group’s 12-person international advisory team is led by real estate veteran John Kukral. The team will additionally benefit from the experience of its European Advisory Board comprised of distinguished corporate and former government figures.
The fund has already committed about €105 million in 4 transactions. “We have a solid pipeline and the international fund is well-timed to capitalize on opportunities arising from the changing European real estate market,” said Kukral. Blackstone expects that BREP International will add to its already impressive track record of alternative asset investing in both the real estate and corporate arenas.
Credit Suisse First Boston’s Real Estate Private Fund Group acted as placement agent for The Blackstone Group in the raising of BREP International.
About The Blackstone Group
The Blackstone Group, a private investment bank with offices in New York and London, was founded in 1985 by Peter G. Peterson, Chairman, and Stephen A. Schwarzman, President and CEO. Blackstone’s Real Estate Group has raised a total of four funds representing around $3.7 billion in total equity. Blackstone has made approximately 110 separate investments in hotels, offices and other commercial properties with a total transaction value of over $13 billion. In addition to real estate investing, The Blackstone Group’s core businesses include Mergers and Acquisitions Advisory, Restructuring and Reorganization Advisory, Private Equity Investing, Private Mezzanine Investing, Liquid Alternative Asset Management, and structured finance products.