In an attempt to expand its overseas operations,
The Blackstone Group L.P.
) and Patria Investimentos entered into a definitive agreement
) to purchase the latter's high-end Alphaville unit. Blackstone
and Patria will collectively purchase 70% of Gafisa's Alphaville
Urbanismo residential-development business.
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The transaction marks the first real estate deal for Blackstone,
following the acquisition of Patria in 2010. The cash deal has
been sealed for R$1.4 billion ($651 million). Moreover, the
transaction has been valued at an equity price of about R$2
billion ($938 million). Further, the purchase of Gafisa's unit by
Blackstone and Patria will permit Gafisa to retain 30% of its
Concurrently, Gafisa entered into an agreement with the founding
partners of Alphaville to acquire the remaining 20% stake in the
latter. The company currently holds 80% stake in Alphaville. This
deal has been finalized for R$367 million ($172 million).
Moreover, Gafisa is expected to utilize the sale proceeds to
reduce its debt-to-shareholder-equity ratio to 53% from 94%
reported in the first quarter of 2013.
The transaction is scheduled for completion in the second half of
2013, subject to regulatory approval from the concerned entities.
Blackstone entered into a string of acquisitions over the past
few months. In Apr 2013, Blackstone announced its agreement with
Credit Suisse Group AG
) to acquire the latter's Strategic Partners, a dedicated
secondary private equity business with about $9 billion in assets
under management. The deal is expected to be completed in the
third quarter of 2013. However, the terms of the transaction have
not been disclosed. The deal is subject to customary closing
In Nov 2012, Blackstone Capital Partners V, L.P − a private
equity fund managed by Blackstone - announced the completion of
the acquisition of GCA Services Group from Nautic Partners,
L.L.C. and other minority shareholders.
In the same month, it also closed the acquisition of Vivint Inc,
a security provider, offering home automation and technology
services. The total value of the acquisition was more than $2
Earlier in Sep 2012, Blackstone reached an agreement with real
estate finance company -
Capital Trust, Inc
) - to acquire the latter's investment unit. Further, the company
is set to purchase 18.2% stake in Capital Trust, giving it the
corresponding managerial rights. Overall, Blackstone is expected
to shell out approximately $30 million for this deal.
Blackstone's recent string of acquisitions reflects the company's
solid capital position. Moreover, these strategic deals are
expected to fuel the company's overall growth in the future.
Blackstone and Gafisa, both carry a Zacks Rank #3 (Hold).