Investment giants BlackRock and TPG Angelo Gordon have successfully raised substantial funds for their European real estate strategies, signaling continued investor confidence in the region’s property market despite economic headwinds. BlackRock’s latest fund garnered €1.2 billion, while TPG Angelo Gordon closed its largest European fund to date at nearly $2.5 billion.
BlackRock’s European Real Estate Push
BlackRock has announced the final close of its sixth European value-add real estate fund, BlackRock Europe Property Fund VI (EFVI), with €1.2 billion in capital commitments. The fund attracted over 60% of its capital from existing global limited partners, alongside 17 new investors. EFVI has already deployed approximately 70% of its capital across 11 investments in key European markets including the UK, France, Germany, the Nordics, and Spain. The investments span various sectors, with a focus on living, logistics, and data centers. Notable acquisitions include a Madrid office-to-residential development, a London student accommodation scheme, a Frankfurt data center, and a portfolio of Swedish logistics properties.
Thomas Mueller-Borja, global co-head of real estate at BlackRock, expressed optimism about the current market, stating, “we believe today’s market represents one of the best buying opportunities for clients in over a decade.” Tatiana Tezel, co-portfolio manager for EFVI, highlighted the strong investor appetite and the fund’s disciplined, research-led approach to sourcing value-creating assets.
TPG Angelo Gordon’s Record European Fund
TPG Angelo Gordon has successfully closed its TPG AG Europe Realty Fund IV at nearly $2.5 billion (€2.2 billion). This figure includes $2.27 billion (€1.99 billion) in capital commitments and an additional $214 million (€188 billion) in co-investment capital. This fund is TPG Angelo Gordon’s largest European real estate fund ever, exceeding its predecessor by 50 percent.
Launched under TPG AG Europe Real Estate, which was established in 2009, Fund IV will focus on the United Kingdom and major markets across Western Europe and the Nordics. The strategy involves identifying off-market investment opportunities, with a particular emphasis on sub-performing assets across the value-add spectrum. TPG Angelo Gordon believes that significant interest rate increases in Europe have created attractive opportunities by eroding real estate valuations. The manager reports that Fund IV is already approximately 20 percent committed, with a strong pipeline of potential deals.
Sources
- TPG Angelo Gordon closes its largest-ever European real estate fund, Private Equity Real Estate | PERE.