BLACKROCK | The world’s largest fund: “Capital raising has fallen, but the money we have to invest is at its highest level”

Rising interest rates and changes in the macroeconomic environment create challenges for fund managers faced with raising capital. “He market fundraising sank. Last year it fell by 39% and was at the 2012 level.“, explained Adolfo Favieres, general director of real estate in Spain at BlackRock, the world’s largest fund manager, during the tenth IESE Business School Real Estate Day, organized by consultancy Savills and valuer Tinsa.

Despite the difficult situation in the capital raising market, Favieres stressed that this does not prevent these funds from investing: “In exchange for the little money we raise, capital that investors have already invested in the past, managers like us, and we have not yet had investments are at historical highsfour trillion dollars.”

This capital provision will make 2024 “very exciting and full of opportunity,” the manager said. Own BlackRock is exploring various opportunities and is behind the proposal to buy to the Treasury a building in the center of Madrid for 205 million euros, announced a few weeks ago by ACTIVOS, the economic vertical of Prensa Ibérica.

As for what will happen in 2024, BlackRock’s first real estate executive noted: “The first half will be unchanged, but I’m optimistic about the latter, and this is where we will start to see lower interest rates. Additionally, I foresee the alternative finance sector to be very active.” According to Favieres, asset price adjustments are still taking place in Spain: “Spain is the last to adjust values, hoping that this will happen. will never happen.”

What assets does BlackRock want to invest in in Spain?

The world’s largest investment fund manager’s appetites are focused primarily on the housing market and its various allocation formulas. “He living room This is what we like best, such as student accommodation, flexible and social housing. Also we really like the property for sale“, confirmed Adolfo Favieres.

In addition to all these segments, They analyze the capabilities of logistics warehouses., but the profitability is very low. BlackRock is not interested in data centers, which it considers an infrastructure asset, or in office-to-home conversions because “technically viable buildings are few and far between and they don’t want to take on planning risks.”