The New York-headquartered investment firm BlackRock, which manages assets worth $9 trillion, has raised €609million for its inaugural European real estate debt strategy, according to media reports. The BlackRock European real estate debt fund (ERED) attracted more than 20 different investors, from all over Asia Pacific and Europeincluding public and private pension plans, insurance companies and financial institutions across EMEA and APac participate in the funding round.
The company described ERED funds as ‘next evolution’ of its existing debt fund series in the US. The investment firm has over 20 years of experience in investing in property credits and its own real estate debt platform has invested $14 billion as of the end of June 2021 on the behalf of different investors across the US and Europe.
Robert Karnes, global head of real assets debt at BlackRock told the media, “‘Increased regulation and tighter credit control has led to intense competition for senior debt. By comparison, relatively little capital has been raised for high-yielding debt strategies. The challenge for alternative lenders is unlocking this investment opportunity and that is where the scale and reach of BlackRock’s Real Assets platform come into its own. We are delighted with the response from investors towards this fund; it demonstrates the strength and resiliency of the strategy.”
Also, it is important to remember that the ERED fund is exclusive to European real estate debt, focusing primarily on junior loans secured by properties primarily located in western European countries. At present, its portfolio covers retail, offices, industrial, logistics, multi-family, student accommodation, and hotels.