Aug 19 Blackstone's real estate arm is
targeting up to $5 billion for a new European fund, according to
a source familiar with the matter, as one of the world's biggest
private equity firms bets on property deals in the region
Blackstone declined to comment on the new real estate fund.
Though the United States represents the bulk of Blackstone's
real estate holdings, the New York-based firm said last month it
was seeing more opportunities abroad. Europe's distressed real
estate is coming up for sale and Asia's financial problems are
creating opportunities, making the two regions more attractive
than the higher priced U.S. market.
Blackstone also agreed to sell its 50 percent stake in
London's Broadgate office complex to a sovereign-wealth fund for
more than 1.7 billion pounds ($2.66 billion), a source familiar
with the deal told Reuters.
Blackstone bought its half share of the 30-acre site in
London's financial district from British Land in
September 2009 for 77 million pounds, and has since then made
investments to improve the property.
Real estate is Blackstone's biggest earner, accounting for
about half its profits in the last quarter. The Broadgate deal
would allow Blackstone to return more cash to its investors as
it pitches them for a new European fund.