BlackRock raises €609m for vintage European fund

BlackRock Real Assets has raised €609 million ($716 million) for its first vintage European fund, BlackRock European Real Estate Debt Fund (ERED).

The fund was backed by more than 20 different investors including public and private pension plans, insurance companies, and financial institutions across EMEA and APAC. IREI understands the initial fundraising target was €500 million ($587 million).

ERED invests in junior debt secured by commercial properties primarily located in western Europe. The fund follows a pan-European investment strategy, focused on the acquisition of offices, retail, industrial, logistics, multifamily, student accommodation and hotel assets.

“With €610 billion [$716 billion] European commercial property loans maturing between 2018 and 2021, prolonged deleveraging in the banking sector and increased regulation, we believe the market context for European real estate debt can offer alternative lenders a significant opportunity,” said