The real estate arm of Blackstone is planning to raise up to US$5 billion for a new European fund, according to media reports.
This move comes amid improving deal flow and economic sentiment on the continent, with a higher demand for real estate assets driving a rise in their valuations.
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Tony James, president of Blackstone said: "Activity levels seem to be shifting from the US, which has been our focus, to Europe where there is more distress, the spigots are starting to loosen up in the sense that people want to sell assets."
The company expects to raise the fund mostly from US, Middle Eastern and Asian investors.
Blackstone said that it was seeing more opportunities abroad though the US represents bulk of its real estate holdings.
Europe’s distressed real estate and Asia’s financial problems are creating opportunities, making these regions more attractive than the US market.
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By GlobalDataBlackstone has also agreed to sell its 50% stake in the London’s Broadgate complex to a sovereign-wealth fund for more than £1.7 billion. The Broadgate deal would allow Blackstone to return more cash to its investors as it pitches them for a new European fund.
Blackstone has bought its half share of the 30-acre site in London’s financial district from British Land in September 2009 for £77 million.
Real estate is Blackstone’s biggest earner, accounting for about half its profits in the last quarter.
