The Real Deal Chicago

Blackstone launches $18B distressed real estate fund

The firm plans to invest in distressed properties globally
September 14, 2018 02:30PM

Jonathan Gray and 345 Park Avenue (Credit: Getty Images)

Blackstone Group is looking to raise $18 billion for its largest real estate fund to date.

New York-based Blackstone will invest the money in distressed properties globally, according to Bloomberg, which first reported the news.

Its previous real estate fund raised $15.8 billion when it closed in 2015, part of $40 billion raised from its three most recent real estate funds.

Blackstone is launching the fund at a time when institutional investors are turning toward real estate to protect against inflation and broaden their portfolios. Data provider Preqin last month said the number of institutional investors that allocate $1 billion or more to real estate grew to 499 in 2018. That was up from about 436 in 2017.

In June, Blackstone raised $7.1 billion for an opportunistic real estate fund focused on Asia.

Now led by Jonathan Gray, Blackstone started its real estate division in 1991 and has amassed $119 billion in assets globally. Its portfolio includes hotel, office, retail, industrial and residential properties in the United States, Europe, Asia and Latin America.

An recent analysis by The Real Deal shows Blackstone owns 20.1 million square feet in New York alone. It also owns the iconic Willis Tower in Chicago as well as numerous properties in Los Angeles and South Florida. [Bloomberg] — John O’Brien