Blackstone Bids $2.38 billion for Investa

For the last few weeks, Industry Leaders Magazine has found itself running a Blackstone acquisition deal almost every week. Earlier this month, the US multinational private equity firm acquired Gramercy Property in a $7.6 billion buyout deal. It also acquired Spanish gambling operator Grupo Circa and its related assets for an unknown amount. Now it is seeking to deepen its investment in the Australian commercial property market with a $2.3 billion bid for Sydney-focused company Investa Office Fund.

Blackstone’s acquisition would help the private equity firm get a stronghold across Australia’s east coast, where analysts expect strong demand even if interest rates rise from their current historic lows. It has an excellent opportunity to get a big cake of the commercial assets in the Sydney market, which many believe is currently the best-performing market.

A few weeks ago, New Zealand-listed Good Property Trust sold the majority-held VXV office portfolio to Blackstone in a $439.4 million deal. The VXV portfolio is owned by Wynyard Precinct Holdings Ltd, a joint venture firm held 51% by GMT.

Blackstone’s growing real estate portfolio has been a factor in former real estate head Jon Gray being named is COO and president in February. While the US private equity firm has been active in the Oceania region a long time, the string of acquisitions markets the firm’s largest fee-grossing field of operation.

In the past couple of months, Blackstone Group has slowly established itself as the most powerful brand among limited partner investors. With more than $80 billion in assets under management, it is known for the size and speed with which it is capable of executing transactions.

In 2015, it partnered with Wells Fargo to acquire most of the assets of GE Capital Real Estate in a deal valued at $23 billion. In 2017, it acquired Sam Zell’s Equity Office Properties for $39 billion. It has properties in U.S., Europe, Asia and Latin American. It owns Invitation Homes, the Hilton chain of hotels, and shopping malls and office buildings in cities worldwide.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

UK watchdog whacks Amazon with probe for unfair data collection practices

UK watchdog whacks Amazon with probe for unfair data collection practices

The Competition and Markets Authority will focus on whether Amazon, Inc. favors merchants that use its delivery services.
1 day ago
Altice buys 12 percent stake in BT worth £2 billion

Altice buys 12 percent stake in BT worth £2 billion

Altice said it did not intend to make a bid for the British Telecoms company, though the takeover code also does not allow it to make an unsolicited buyout offer for six months wit
1 day ago
G7 countries agree on broad principles of minimum corporate tax deal

G7 countries agree on broad principles of minimum corporate tax deal

The world’s richest nations (G7) reached a landmark accord setting a global minimum corporate tax rate for multinationals. Would it be effective in tackling tax evasion and avoid
1 day ago
BC Partner goes the Continuation Fund way to strike a $7bn deal

BC Partner goes the Continuation Fund way to strike a $7bn deal

BC Partners, a UK private equity firm, has floated a “continuation fund” deal, one of Europe’s largest such deals, by transferring its 47 per cent stake in the academic publi
2 days ago
FDA approves Biogen’s $56,000 drug for Alzheimer’s

FDA approves Biogen’s $56,000 drug for Alzheimer’s

The Food and Drug Administration of the US approved on Monday Biogen Inc’s Aducanumab to treat Alzheimer’s disease amidst the controversy of its efficacy. Biogen has pr
3 days ago
UK watchdog’s plans for big banks to draw fair compete rules draws criticism

UK watchdog’s plans for big banks to draw fair compete rules draws criticism

Under UK Finance’s proposals, nine banks under investigation by the CMA would be obliged to fund a “future entity” for three years.
3 days ago