- BlackRock closes Europe Property Fund VI (EFVI), the sixth vintage in its established European value-add series
- EFVI sees over 60% re-up capital from global LPs and welcomes 17 new investors to the series, demonstrating high conviction for BlackRock ’s market-proven value-add strategy
- Fund launched to capture attractive entry point in Europe’s real estate cycle, with 70% of capital already committed across living, logistics, and data centre investments
- Fundraise further strengthens BlackRock ’s global real estate business and expanding private markets platform
The fundraise reflects strong support from the existing Limited Partners (LPs) in the series, with re-up capital accounting for over 60% of the equity raised for EFVI. The Fund also welcomed 17 new LPs to the series, expanding and diversifying its client base across geographies and segments. Several clients topped up their initial commitments during the fundraising period, underscoring their conviction for re-priced European real estate and the strong investment pipeline and performance of BlackRock ’s value-add platform.
Thomas Mueller-Borja, Global Co-Head of Real Estate and Co-Portfolio Manager of EFVI at BlackRock , said: “Following a period of correction in global real estate, we believe today’s market represents one of the best buying opportunities for clients in over a decade. With EFVI, we have developed a solution that enables our clients to access this market and increase their exposure to European real estate at a time when entry points and structural trends provide attractive upside potential. Against the backdrop of a challenging fundraising environment, the final close of our sixth vintage marks a significant milestone for our established European value-add programme and continues to build momentum as we look ahead to further expanding the series for our clients.”
To date, EFVI has committed approximately 70% of its capital to 11 investments in sectors spanning living, logistics, and data centres. EFVI’s flagship assets include MM50, a major office-to-residential and PBSA development project in Madrid; Enclave, a large studio-living scheme in London; a hyperscaler data centre development opportunity in Frankfurt; and a portfolio of Swedish logistics. With assets in the UK, France, Germany, the Nordics, and Spain, the Fund has developed a diversified pan-European portfolio that is closely aligned with long-term structural “mega forces” such as strong urban demographics, geopolitical fragmentation, digital disruption, and the low-carbon transition.
As an SFDR Article 8 fund, EFVI aims to create futureproof assets with strong sustainability credentials. The Fund’s strategy focuses on recapitalising, repositioning, and rebuilding assets using a hands-on approach to deliver value throughout the lifecycle of each investment. Leveraging insights from the BlackRock Investment Institute and the firm’s global real estate platform, EFVI’s strategy is delivered by on-the-ground teams in core European markets who each bring deep local market expertise.
Tatiana Tezel, Co-Portfolio Manager for EFVI at BlackRock , said: “We are incredibly proud of the exceptional investor appetite for EFVI from both existing and new clients alike. Our European value-add platform continues to grow from strength to strength, which is testament to our disciplined, research-led approach that’s underpinned by our guiding principles for delivering value-add returns for clients. With over 70% of EFVI’s capital already committed, we have remained focused on sourcing unique assets that create value on entry. This has enabled us to build a diversified pipeline of high-conviction investments, ensuring our clients benefit from a resilient, futureproofed portfolio.”
The strong investor interest in EFVI comes as institutional and wealth clients increase their allocations to private markets. A core asset class within alternatives, global private real estate AUM is forecast to continue its steady growth to $2.7 trillion by 2029, increasing from $1.6 trillion in 2023, according to Preqin[1].
BlackRock ’s real estate platform manages approximately $25 billion in AUM[2] globally on behalf of global institutional investors, including some of the firm’s most strategic clients. It provides investors with access to real estate investments across the risk spectrum via separately managed accounts, comingled funds and co-investments. Alongside Europe, BlackRock ’s value-add investment programme includes a flagship series in Asia to capture the attractive opportunity set in the region.
