The property unit of
Blackstone Group LP
) has forayed into the Singapore real estate market with the
purchase of a property there. According to a Reuters report, the
company has acquired StarHub Green project, a 400,000 square feet
business park, from SEB Asset Management, a German company.
Blackstone shelled out S$215 million ($173 million) for this
The property was sold by SEB as part of its effort to raise cash
to oblige to the redemption demands. In fact, in the midst of the
financial crisis of Europe, a number of European financial
institutions/financial institutions in the territory have resorted
to asset sales for generating cash. Such a situation has opened up
opportunities for companies like Blackstone to diversify and
augment its real estate assets.
Based in Germany, SEB Asset Management is a unit of
Skandinaviska Enskilda Banken, a Stockholm-based bank. Blackstone
is an asset manager of alternative investments and a provider of
financial advisory services. It is headquartered in New York,
KKR & Co. LP
) is also vying to expand its business in Southeast Asia. We
believe this region attracts these companies with promises of
growth in their investment value.
Last month, the Blackstone Group reported its first quarter 2012
economic net income (ENI) of 39 cents per share, missing the Zacks
Consensus Estimate of 42 cents. This was also nowhere near 51 cents
in the year-ago quarter.
Results declined due to the shrinking top line, which was, to
some extent, softened by lower expenses. Despite the disappointing
results, sturdy improvement in assets under management was a huge
Going forward, we believe that investment appreciation in
Blackstone along with the growing need for risk management, and
alternative investment solutions within the financial service
industry are expected to contribute positively to the company over
the long run.
Nevertheless, the company's poor performance combined with the
persistent sluggish economic recovery will continue to put its
financials under pressure.
Currently, Blackstone retains a Zacks #3 Rank, which translates
into a short-term Hold rating.
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KKR & CO LP (KKR): Free Stock Analysis
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