BlackRock raises €774 million at first close for Europe Property Fund VI

BlackRock Private Markets (BlackRock) has raised €774 million in initial investor commitments for the BlackRock Europe Property Fund VI (EFVI or the Fund) at its first close, with capital provided by a diverse set of global institutional investors, including new clients and LPs from prior vintages.

European real estate markets have recently repriced more swiftly than other regions. Amid stabilising interest rates and inflation, EFVI, the latest vintage in BlackRock’s European value-add series, plans to take advantage of this attractive entry point.

The fund will target the most liquid markets in Europe, with a focus on the UK, France, Germany, the Nordics and Spain; and invest in high-quality assets aligned with the structural “mega forces” driving the economy and future occupier demand. These mega forces include demographic shifts, digital disruption and the transition to a low-carbon economy and a net zero built environment.

The fund will focus on, amongst others, the need to develop student housing and new residential units, and to provide business-critical logistics and data centre premises in under-supplied markets. As an SFDR Article 8 fund, EFVI aims to create future-proof assets with strong ESG credentials, including high-energy efficiency and pathways to net-zero emissions.

Business plans will focus on recapitalising, repositioning, and rebuilding assets with the BlackRock teams using a hands-on approach to deliver value throughout the life cycle of each investment.

BlackRock’s broad network, extensive research capabilities and on-the-ground presence across European regions creates an ability to source off-market opportunities for its clients – an important source of deal flow across recent vintages. To date, EFVI has already committed €289 million of equity across four investments: two logistics assets in Sweden, and multi-family assets and student housing in the UK.

Anne Valentine Andrews, Global Head of Real Estate & Infrastructure at BlackRock added: “The European Value-Add series is a vital component of our US$28 billion global private equity real estate business. Despite continued market uncertainty, the window of opportunity is opening for real estate investors. This requires getting granular within asset classes and harnessing the structural mega forces driving future demand and requirements for real estate. We are pleased to partner with our clients in this latest vintage, delivering local market knowledge and personalised service from BlackRock.”