BLACKSTONE secured about US$8 billion in capital commitments for a new real estate debt fund, the latest effort to seize on dislocations in the property market.
Blackstone Real Estate Debt Strategies V can invest around the world with strategies including lending, liquid securities and structured solutions, according to a statement on Friday (Mar 7).
The US commercial property market was walloped after the pandemic by the rise in remote work and high interest rates. With banks pulling back from the market, there’s been a financing gap that’s left owners struggling to refinance debt on existing properties. Some lenders have also sought to sell off real estate debt.
Offices were among the hardest-hit properties. But there’s some signs of strength lately. In Manhattan, the amount of office space leased in January and February was the strongest for that two-month period since 2014, according to CBRE Group.
Blackstone is a major owner of commercial real estate globally and its real estate debt group manages US$77 billion of assets. The Wall Street Journal earlier reported the final closing of the fund.
“We are extraordinarily appreciative of our investors for allocating this amount of capital during this period of market dislocation,” said Tim Johnson, global head of Blackstone Real Estate Debt Strategies. “We could not be more enthusiastic about the opportunities ahead.” BLOOMBERG
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