B
lackstone has closed its latest commercial property debt fund, raising $8 billion in a move that matches the record for similar investment vehicles. The Blackstone Real Estate Debt Strategies V fund will focus on assets in North America, Europe, and Australia, targeting opportunities created by market dislocations and the upcoming $1.5 trillion wall of debt maturities.

    The fund's success is seen as a sign that investor sentiment is warming up to commercial real estate assets, with REITs becoming increasingly popular buys. Despite being largely excluded from the post-election stock market surge, REITs have managed to hold their value during the subsequent sell-off, benefiting from uncertainty injected into the economy by trade policies.

    The fund will make new property loans and purchase existing ones, partnering with banks on deals where Blackstone takes the less senior but higher-yielding debt. It also plans to provide bridge and mezzanine financing to properties facing maturity dates, as well as buy loans from banks and insurance companies looking to reduce their commercial real estate exposure.

    Blackstone's Real Estate Debt Strategies group has $77 billion in combined assets under management, with the firm's total real estate assets reaching $315 billion. The fund's manager, Tim Johnson, expressed gratitude for investor support during a period of market dislocation, citing enthusiasm for opportunities ahead.