Global alternative asset manager Blackstone Group has officially announced it is gearing up for property investment in Europe with a $4.3 billion (3.1 billion euros) fund prepared for that purpose. The fund initially sought to be raised by The Blackstone Real Estate Partners Europe III was 2.5 billion euros.

As it anticipates the real estate’s recovery in Europe, Blackstone is poised for aggressive recapitalization of the property sector, according to Chad Pike, co-head of Blackstone Real Estate.

Originally formed as a mergers and acquisitions (M & A) firm in 1985, Blackstone has evolved with a myriad of new investments. The private equity firm has been engaged in the most valuable real estate portfolio since 1992, starting with a series of high-profile acquisitions of hotel businesses. From that time forth, its real estate unit now operates globally with 122 investment professionals in the US, Europe, and Asia.

Since its foundation, Blackstone has closed real estate deals with reputable companies like Hilton Hotels Corporation, Equity Office Properties, Trizec Properties, Center Parcs UK, La Quinta Inns & Suites, Wyndham Worldwide, Southern Cross Healthcare.

Its move to Europe is part of the firm’s effort to make a sustained comeback in real estate investment despite analysts at Reuters Global Real Estate Summit foreseeing recovery in the sector to be far off.

In dealing with its real estate plans, Blackstone Group’s game plan remains the same: cautious and patient.

“Given the continued deterioration in the global economy and the lagging nature of the real estate market, we will remain disciplined and cautious in deploying this capital over the coming years,” Pike adds.

The Blackstone Group has been faring well especially in its restructuring and management advisory deals with troubled companies. In its released First Quarter Results for 2009, management and advisory fees rose to $344.6 million from $320.8 million. Fee earning assets were up to $92.2 billion versus $91.0 billion in December 31, 2008.

Stephen Schwarzman, CEO of the Blackstone Group, maintains the private equity firm’s legendary business acumen. Blackstone Group has weathered the economic crisis well, with no government bail outs or expense to the taxpayers.