Blackstone draws $1.5b in commitments for Asia property fund - report

The fund had a first close on June 7 and plans to start investing immediately. According to Bloomberg, it will focus on China, India, Australia and Japan.

The fund initially launched in April, with a target amount of twice what the firm initially intended to raise. The launch was revealed last December when Tony James, Blackstone's president, told a conference that it was a "golden moment" to engage in property market investment.

Investors include New Jersey Division of Investment, which is to commit $500 million to the fund.

This is Blackstone's first dedicated Asia real estate vehicle, but the firm has been active in Asia - notably in Australia and India - through its global funds. Blackstone last year closed its largest-ever private real estate fund at $13.3 billion, with China's State Administration of Foreign Exchange reportedly committing $500 million.

The firm recently secured the largest-ever commercial real estate deal in India, acquiring a 50% stake in a portfolio of three business parks for $200 million. It also agreed to purchase Shanghai's Huamin Imperial Building, an office tower valued at approximately RMB7 billion ($1.12 billion).

Between 2010 and 2013, Blackstone invested about $1.46 billion of equity in 15 transactions across the region. In 2010, it also took over management of more than $2 billion of Asian real estate assets when it replaced Bank of America Merrill Lynch as the GP for the Merrill Lynch Asian Real Estate Opportunity Fund.

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• Topics
• Real estate
• Fundraising
• Asia
• The Blackstone Group
• Real estate
• Fundraising