New-York based private-equity giant
The Blackstone Group L.P
) announced that it has agreed to sell 50% of its stake in
London's Broadgate complex. The deal has been sealed for an
amount exceeding $2.66 billion (???1.7 billion).
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An undisclosed sovereign wealth fund has agreed to acquire the
interest in Broadgate complex. Alongside, this happens to be one
of Europe's biggest office deals.
In 2009, Blackstone purchased 50% share in the property and had
agreed not to sell its stake in the property for the next three
years. At that time the property was valued at $3.29 billion
(???2.1 billion). Moreover, the company invested additional
capital in order to restore the property. However, the remaining
50% interest in the property will be retained by British Land Co.
that comprises 16 office buildings on 30 acres, restaurants,
stores, health clubs and pubs.
Alongside, Blackstone has initiated raising a new fund for the
European real estate worth $5 billion. This would be Blackstone's
fourth new fund for European real estate as it wants to
capitalize on the opportunities worldwide. Moreover, investors
from U.S., Middle Eastern and Asia are anticipated to invest in
the company's new European fund.
Moreover, Blackstone had agreed to purchase 80 apartment
properties in U.S. from
General Electric Company
) for approximately $2.7 billion.
Lately, in the past few months, Blackstone has been a part of
various high-profile deals. Recently, the company was in
The Goldman Sachs Group, Inc
) to buy a marginal stake in the latter's European pension
insurance operation, Rothesay Life Ltd.
Moreover, due to the recent rise in property prices in the U.S.,
Blackstone has been disposing its largest real estate properties.
Blackstone has sold office buildings that were acquired by the
company prior to the recession in 2008.
Additionally, Blackstone had previously purchased properties in
Europe due to the fall in property prices following the financial
crisis. In Nov 2012, the company purchased Burlington Hotel in
Dublin for $89 million (???67 million).
The Blackstone's disposal of its stake in Broadgate is expected
to provide financial flexibility to the company. Moreover, due to
the rebound in property prices across the globe, Blackstone has
been shedding its assets in order to gain profits.
Blackstone currently carries a Zacks Rank #2 (Buy). In the same
Fortress Investment Group LLC
) is also performing well with a Zacks Rank #2 (Buy).