BlackRock raises €1.2b for European property fund

BlackRock has secured €1.2 bn from investors worldwide for its latest European property fund, BlackRock Europe Property Fund VI (EFVI). 

Over 60% of the equity came from returning investors, and 17 new investors joined the fund, underscoring BlackRock's proven track record and the appeal of re-priced assets in the European market.
The fund will target undervalued real estate opportunities across Europe, capitalizing on market shifts and trends. 
The successful fundraising demonstrates strong investor confidence in the European real estate market and BlackRock's value-add investment strategy.
Thomas Mueller-Borja, global co-head of Real Estate and co-portfolio manager of EFVI at BlackRock, said: “Following a period of correction in global real estate, we believe today’s market represents one of the best buying opportunities for clients in over a decade. With EFVI, we have developed a solution that enables our clients to access this market and increase their exposure to European real estate at a time when entry points and structural trends provide attractive upside potential. Against the backdrop of a challenging fundraising environment, the final close of our sixth vintage marks a significant milestone for our established European value-add programme and continues to build momentum as we look ahead to further expanding the series for our clients.”
Tatiana Tezel, co-portfolio manager for EFVI at BlackRock, added: “We are incredibly proud of the exceptional investor appetite for EFVI from both existing and new clients alike. Our European value-add platform continues to grow from strength to strength, which is testament to our disciplined, research-led approach that’s underpinned by our guiding principles for delivering value-add returns for clients. With over 70% of EFVI’s capital already committed, we have remained focused on sourcing unique assets that create value on entry. This has enabled us to build a diversified pipeline of high-conviction investments, ensuring our clients benefit from a resilient, futureproofed portfolio.”
BlackRock's EFVI has already deployed approximately 70% of its capital across 11 investments in residential, logistics, and data centre projects. The fund's diversified pan-European portfolio, with assets in key markets like the UK, France, Germany, the Nordics, and Spain, is designed to capitalize on long-term trends such as urbanization, geopolitical shifts, digital transformation, and the transition to a low-carbon economy. 
Key investments include a major office-to-residential conversion in Madrid (MM50), a large studio-living project in London (Enclave), a data centre development in Frankfurt, and a portfolio of Swedish logistics properties.