Blackstone Raises $10.9 Billion For Distressed Real Estate Fund
Kurt Brouwer April 1st, 2008
Blackstone Raises Record $10.9 Billion Property Fund (Bloomberg, April 1, 2008, Hui-yong Yu & Jason Kelly)
Blackstone Group LP, manager of the world’s biggest leveraged buyout fund, raised a record $10.9 billion to invest in property as the U.S. housing slump pushes global real-estate prices lower.
The fund, the New York-based firm’s ninth property pool, brings to $25.7 billion the capital it has gathered since 1992 to buy real estate, Blackstone said in a statement today. The company is starting a separate fund of more than $1 billion for Western Europe.
Blackstone and other so-called opportunity funds are raising capital to take advantage of a drop in asset prices following the collapse of the U.S. subprime-mortgage market.
…Another opportunity fund, Dallas-based Lone Star Funds, is raising as much as $10 billion to invest in real estate. Lone Star plans to buy residential mortgages and lenders and commercial properties such as office buildings and hotels.
“This is as good a distressed environment as we’ve seen in a long time,”
Lone Star managing partner John Grayken told the Oregon Investment Council during a fund pitch on Jan. 30. “It’s a race among a number of different lenders to play this.”
With the new fund, “there should be attractive investment opportunities for this capital, given the market dislocation that exists today,” Jonathan Gray, senior managing director and co-head of Blackstone’s real-estate group, said today in a statement…
Interesting. One person’s problem property is another’s opportunity.
- Economy , Geopolitics , Hedge Funds , Investing , Money
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