London, UK – 14 April 2025 – Blackstone has successfully closed a €9.8 billion (USD 10.8 billion) property fund in Europe, marking a significant milestone as the largest external capital raise for European property to date. Launched in February 2023 amidst considerable market turbulence, the Europe Real Estate Partners VII fund reflects robust investor confidence in Blackstone’s strategic vision, even as European real estate markets navigate ongoing volatility.

The firm has positioned itself to capitalise on emerging recovery trends, viewing the current environment as an opportune moment for selective, high-conviction investments. In an official press release, James Seppala, Head of European Real Estate at Blackstone, stated: “We are extremely proud to have raised Europe’s largest real estate drawdown fund ever during what has been a period of exceptional dislocation in the industry, particularly in Europe. The real estate recovery is coming into view and we are grateful that our limited partners have entrusted us with substantial capital to seek to capture opportunities through our time-tested, high conviction investment process.”

Despite global economic uncertainties, including renewed geopolitical tensions and trade-related policy shifts, recent indicators suggest a tentative rebound in the sector. Market participants remain cautious, yet Blackstone’s commitment to identifying assets aligned with its value-enhancing approach underscores its resilience. The firm’s opportunistic real estate platform, which targets assets with higher risk profiles and strong turnaround potential, has now attracted nearly $47 billion globally, encompassing investment vehicles focused on Asia, a global strategy, and a substantial allocation towards U.S. properties.

Managing $315 billion in capital, Blackstone maintains a diversified portfolio across logistics, hospitality, and residential sectors. Its opportunistic funds target undervalued properties, while the Core+ platform emphasises stable assets through institutional strategies and income-oriented options such as the Blackstone Real Estate Income Trust (BREIT). The closing of the European fund reinforces Blackstone’s leadership in alternative investments and its confidence in navigating the shifting real estate cycle, positioning the firm for continued success in the months ahead.