Blackstone raises $4.5bn for BREDS III

Blackstone has raised $4.5 billion for Blackstone Real Estate Debt Strategies (BREDS) III fund, sources confirmed to Real Estate Capital.

Blackstone has raised $4.5 billion (€4.05 billion)  for Blackstone Real Estate Debt Strategies (BREDS) III, sources confirmed to Real Estate Capital.

The real estate debt fund, like its predecessors, invests in transitional assets and mezzanine loans mainly in the US and Europe, but Blackstone has hired or plans to hire investment professionals in Hong Kong, Australia, Mexico and Canada to expand its global reach.

When the fund held its $1.3 billion first close in January, sources said that Blackstone was seeking $4 billion in total. By March the real estate debt arm of the private equity giant had raised $2.05 billion.

Commitments into the fund have included $100 million each from the Pennsylvania Public Employees Retirement System, Illinois Municipal Retirement Fund and the New Jersey State Investment Council (NJSIC). The management fee is 1.5 percent on invested capital only, according to an initial report from IPE.com.

The previous fund, BREDS II, closed with $3.3 billion of commitments, but with $4 billion in total capital including two separate accounts.

The BREDS platform, launched in 2008, is headed by global chairman Michael Nash, previously head of the US real estate principal investment team at Merrill Lynch. Jonathan Pollock, former head of commercial real estate at Deutsche Bank, joined the platform last year and is now its global head.      

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