Core

Although the firm will continue to own other parts of ARA Asset Management, the APF sale itself includes notable exclusions.

BGO has formed a strategic partnership with 1Sharpe and committed to deploy $500m on single family rentals through the venture.

With support from some of India’s biggest domestic investors, the exit from Embassy REIT generated a 3x to 3.5x return for Blackstone.

In addition to expanding into non-core strategies, the investor is planning to increase its pool of real estate funds from five to 15 by 2025.

Investors may be amenable to investment period extensions in today’s climate, but lengthening the fund term could have more serious implications.

The Hong Kong-based firm has received an initial commitment of more than $400m from an anchor investor in the fund.

Although 38% of investors were overallocated to the asset class in 2023, only 27% plan to invest less capital this year.

The executives will be the New York-based asset manager’s first dedicated heads of real estate since Marcus Sperber departed in 2019.

Investors are hurting from the poor performance of real estate, but this has not diminished their appetite for fresh investments.

The total of $138.93bn raised in 2023 represented a 41% drop from the $236.04bn raised in the 2021 fundraising peak.