Blackstone Eyes Record $30B for Latest Real Estate Fund

Blackstone’s Stephen Schwarzman (Getty)

Blackstone says it’s close to finalizing one of the largest real estate investment funds in history.

The investment giant has raised $24.1 billion in the last three months for its latest opportunistic real estate fund, known as Blackstone Real Estate Partners X, it said in a regulatory filing Wednesday.

That capital, along with $300 million of Blackstone’s own money and an additional $5.9 billion it says it’s allocated to investors, would bring the pool to $30.3 million when completed — making it the largest private-equity real estate investment vehicle ever assembled, according to the Wall Street Journal. The current record belongs to the fund’s predecessor, Blackstone Real Estate Partners IX, which raised $20.5 billion in 2019.

Combined with funds for real estate in Asia and Europe, Blackstone will have more than $50 billion available for opportunistic investments. Only about 12 percent of the fund has been invested, it said.

Blackstone’s $298 billion real estate portfolio has primarily focused on warehouses, multifamily and other rental housing, as well as hospitality and life sciences. It has also been targeting private takeovers of REITs as market valuations remain volatile in the face of rising interest rates and inflation.

Despite reporting a $29.4 million net loss in the second quarter, Blackstone remained bullish on the strength of its real estate portfolio. Its Core+ real estate business appreciated 2.3 percent year over year, helping make up for a 1 percent loss posted by the firm’s opportunistic real estate holdings.