BlackRock has raised €609m (£516m) for its first European real estate debt fund.
The fundraise was significantly above the company’s target, understood to be around €500m.
The fund invests in junior debt against offices, retail, industrial, multifamily, student and hotel properties in Western Europe and targets a loan-to-value ratio of 75%.
More than 20 investors have backed the fundraise, including public and private pensions, insurance companies and financial institutions.
Robert Karnes, BlackRock’s global head of real assets debt, said: “Increased regulation and tighter credit control has led to intense competition for senior debt. By comparison, relatively little capital has been raised for high yielding debt strategies. The challenge for alternative lenders is unlocking this investment opportunity.”
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