Real Estate Overview

BlackRock's global real estate capabilities extend across the capital market structure to include equity and debt products. Through specialized teams managing assets out of seven real estate investment centers worldwide, BlackRock offers clients a differentiated and diverse product line, including dedicated property sector capabilities. These products are available to institutional and high-net-worth investors through commingled vehicles and separate accounts. BlackRock manages real estate debt and equity strategies, with focuses on Global, U.S., European, Australian and Asian markets.

BlackRock believes that successful real estate investing is a result of establishing a strategic advantage in portfolio exposures to property sectors and markets, and in the speed and quality of executing those exposures. This focus on strategy and execution is the cornerstone of BlackRock's investment philosophy. BlackRock's real estate investment strategy is guided by its proprietary research tools and the combined knowledge, experience and market expertise of its senior investment professionals.

However, BlackRock believes knowledge of a superior mix of sectors and markets is an advantage only if the portfolio can move to establish exposure in those sectors and markets quickly. The firm is therefore organized for maximum opportunity flow. The firm expands its acquisition flow by teaming its skilled transaction team with the experience and relationships of its portfolio and asset management teams to source investments and investment partners.

In addition, BlackRock's deep market relationships sizably expand its ability to source investments. Direct relationships with other investors, developers and lenders often help the firm uncover investment opportunities before they reach the general marketplace, thereby avoiding "bidding wars" that can drive up prices and push down yields.

Real Estate Equity

BlackRock is a leading private real estate equity investment manager for public, corporate and union pension plans, as well as insurance companies, foundations, endowments and private investors. We offer a broad array of investment strategies, including core, value-add and opportunistic. Our extensive experience encompasses all major property types: office, industrial, retail and multihousing. We package this for clients as both direct investments in real estate separate accounts and indirect investments through both open-end and closed-end private real estate funds.

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Real Estate Debt

BlackRock manages high-yield and investment-grade real estate debt through a variety of vehicles including separate accounts, publicly traded real estate investment trusts and institutional funds. Each product is designed to provide strong absolute and risk-adjusted returns on a secured basis. BlackRock has invested over $6.0 billion in high-yield real estate debt transactions, including mezzanine debt and b-notes, since the program's inception in 1998. As with our other strategies, all real estate debt products leverage our leading capital markets position to source attractive opportunities and to provide perspective on relative value. BlackRock's expertise in the commercial real estate debt markets enables us to develop and offer new investment vehicles to investors.

• Carbon Capital I
• Carbon Capital II
• Carbon Capital III

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Real Estate Transactions

BlackRock believes that it has a competitive advantage in sourcing, underwriting, and executing, which enables BlackRock to deliver attractive investments to clients.

BlackRock is interested in acquiring institutional-quality properties in four major sectors: apartment, office, industrial and retail. We consider Class A and Class B properties, as well as value-add and development opportunities when the investment criteria meets portfolio investment criteria or, in the case of individual accounts, the client's investment objectives. Properties are acquired on an all-cash basis as well as with the use of leverage. BlackRock will acquire core, value-add, pre-sale, development, and portfolio/entity-level transactions. BlackRock also enters into a significant number of joint venture transactions. Markets are targeted in accordance with BlackRock Research findings.

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