BlackRock Real Assets achieves hard cap and reaches EUR1.287bn at final close for Europe Property Fund V
BlackRock Real Assets has raised EUR1.287 billion for its Europe Property Fund V with an additional EUR200 million of commitments for co-investments, totalling EUR1.487 billion for the strategy.
The capital raised in EFV represents 39 diversified institutional investors including public plans and private pension funds, sovereign wealth funds, family offices, insurance companies and non-profit organisations across EMEA, APAC and the Americas. Some 67 per cent of the capital in Europe Property Fund IV (EFIV), the predecessor fund, also invested into EFV. Amidst growing market uncertainty, EFV’s successful fundraise demonstrates the high-level of confidence and trust investors place in BlackRock’s expertise and track record.
Building on the value-add strategy of EFIV, EFV aims to generate returns from repositioning, rebuilding and recapitalising real estate assets across Europe. Like its predecessor, EFV is a city focused and principle-based investment strategy. In response to the COVID-19 pandemic, the team expects to focus its investment activity on markets that have the strongest public finances and healthcare systems as well as the least amount of exposure to tourism as a percentage of GDP, eg Germany, the UK, the Nordics and France. EFV will aim to benefit from anticipated market dislocations and will position itself defensively in sectors with secular tailwinds such as housing and logistics.
Thomas Mueller, Portfolio Manager for EFV and EFIV at BlackRock Real Assets, says: “We are at the very beginning of what we believe will be one of the largest market dislocations in our lifetime. Whereas we struggled to find sufficiently attractive risk-adjusted returns for EFV over the past twelve months, we strongly believe that buying opportunities await those that can remain patient in the near-term. As the pandemic continues to drag on the real economy until we have a vaccine or drug, real estate occupational markets will start to deteriorate, albeit with a time lag. This should provide EFV with opportunities to help landlords in need of liquidity solutions and to acquire and lease up buildings with increasing vacancy. Today we have more than 90 per cent of dry powder available. EFV will be a strong vintage.”