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Blackstone hits $5.25bn for real estate

The New York-based firm has closed on the largest private equity real estate fund ever raised.

The Blackstone Group today confirmed that it has reached a final close of $5.25 billion (€4.15 billion) for Blackstone Real Estate Partners V.

The fund is the largest real estate opportunity fund ever raised and is more than double the size of Blackstone’s previous real estate fund raised in 2003. The firm now has over $7 billion of available capital, the world’s largest pool of capital for real estate investing.

The firm  has aggressively bought up real estate assets across sectors in the past few years. Blackstone’s real estate group now has more than 40 investment and asset management professionals. In the past two years the firm has completed ten public to private transactions including Wyndham, La Quinta, Meristar, NHP, Hospitality Europe and CarrAmerica.

On Monday, Blackstone and Brookfield Properties formed a joint venture to buy Trizec, one of the biggest commercial landlords in the United States, for $8.9 billion. The joint venture also bought Trizec Canada. In the last two years, Blackstone has acquired eight publicly traded real estate entities.