Blackstone Real Estate Partners IV Closes Over Target

May 26, 2004, 00:00 AM by User Not Found
New York, May 26, 2004: The Blackstone Group today announced the final closing of its Blackstone Real Estate Partners IV (BREP IV) on April 30th, 2004, the fifth real estate fund to be raised by the New York-based private investment firm.

New York, May 26, 2004: The Blackstone Group today announced the final closing of its Blackstone Real Estate Partners IV (BREP IV) on April 30th, 2004, the fifth real estate fund to be raised by the New York-based private investment firm.

With BREP IV’s capital commitments from third party investors added to the firm’s own commitments, the fund totals $2.05 billion and substantially exceeds its initial target of $1.5 billion. The fund's investors include numerous existing Blackstone clients and over 30 first-time partners, including a wide range of corporate and public pension funds, financial institutions and high net worth individuals.

Previous funds include Blackstone Real Estate Partners III (BREP III), which closed in 1999 and Blackstone Real Estate Partners International (BREP International), which closed in 2002, with commitments of $1.5 billion and €800 million respectively.

“We are delighted by the continued show of support from our partners, and their welcome vote of confidence in the group’s ability to identify and conclude highly profitable transactions,” said Stephen A. Schwarzman, President and CEO of The Blackstone Group.

Since the inception of BREP IV’s investment period in April 2003, Blackstone has invested approximately $460 million, or 23% of the fund, in 8 separate investments. The fund’s investment period will terminate, unless earlier invested, on October 2, 2007.

BREP IV will focus value-added real estate investing and such sectors as office repositionings, corporate divestitures, lodging, undervalued retail, industrial and warehouse acquisitions and development, distressed debt, and public and private real estate operating companies.

“We have a solid pipeline of potential investments and BREP IV is well-timed to capitalize on opportunities arising from the current favorable economic environment for this asset class,” said John Kukral, President, CEO and Co-Founder of Blackstone Real Estate Advisors.

Blackstone expects that BREP IV will add to its already impressive track record of alternative asset investing in both the real estate and corporate arenas.

About The Blackstone Group

The Blackstone Group, a private investment firm with offices in New York, London and Hamburg, was founded in 1985. Blackstone Real Estate Advisors has now raised five funds representing more than $6 billion in total equity. The group has made over 100 separate investments in hotels, offices and other commercial properties with a total transaction value in excess of $15 billion. In addition to real estate, The Blackstone Group's core businesses include Private Equity Investing, Corporate Debt Investing, Marketable Alternative Asset Management, Corporate Advisory, and Restructuring & Reorganization Advisory.