Blackstone Group is looking to raise $15 billion of equity for a new global property fund. That amount would be a record for such a fund, according to Bloomberg.
The Ohio Police & Fire Pension fund invested $70 million, the website reported. The new pool of money would provide Blackstone, which is the largest private equity investor in real estate, with a purchasing power of $45 billion.
The firm is taking advantage of high demand for real estate and record-low interest rates. Blackstone bought Vornado Realty Trust’s 1740 Broadway in November for $605 million. In December, the firm made an investment in a real estate tech startup when it paid $3.3 million for a stake in VTS, a leasing and portfolio management company based in New York.
Blackstone has also been looking to buy more properties, according to the website. Blackstone is looking to invest 60 percent of its equity in North America, the website reported, and is hoping for net returns of roughly 15 percent. [Bloomberg] — Claire Moses