Private equity giant Blackstone is extending its European real estate fund by €1.5bn to reach a massive €6.6bn.

Blackstone Real Estate Partners Europe IV closed in March at €5.1bn and is already two-thirds invested.

The fund specialises in distressed assets in the UK and continental Europe.

Property Week revealed this week that Blackstone had swooped on the Sanctuary Buildings in Victoria, paying Tishman Speyer £175m.