BlackRock’s newest Asian real estate fund has raised over $ 1 billion from investors, following in the footsteps of its predecessor fund.
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Institutional investors are apparently betting on the potential of Asian real estate. BlackRock Real Assets has received $ 1.175 billion in capital commitments for BlackRock Asia Property Fund V. The fund pursues a value-add strategy and invests in real estate in the Asia-Pacific region. The amount of capital raised is well above the target volume of one billion dollars, despite the market uncertainty in the face of the pandemic. The commitments are a strong commitment to BlackRock’s team and expertise. They come from various customer groups of new and existing institutional investors in Europe, Asia and America. These include private pension funds, insurers, sovereign wealth funds, family offices and foundations. 75 percent of the investors were already invested in the predecessor fund of the BlackRock Asia Property Fund IV.
BlackRock Asia Property Fund V is primarily aimed at generating returns through repositioning, remodeling, leasing and recapitalizing properties. The focus is on Japan, Australia, Singapore, China and Hong Kong. Preference is given to defensive, high-yield off-market properties with several tenants in growing sub-markets that meet the requirements of institutional investors. Correctable deficiencies provide opportunities for repositioning through business plans that are geared towards rapid turnovers.
BlackRock Real Assets comprises the two units Real Estate and Infrastructure Investment within BlackRock Alternative Investors. BlackRock Real Assets offers investors equity and debt capital solutions in the real estate and infrastructure segments as well as securitized tangible assets in the form of funds, individual mandates and co-investments. Since BlackRock Real Assets was founded in January 2016, investor commitments in this area have grown from $ 25 billion to $ 60 billion as of December 31, 2020. (aa)
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