Blackstone eyes more real estate acquisitions in Asia
American private equity firm Blackstone Group LP said that it is poised for more deals in Asia as maturing funds sell assets and banks retreat amid new regulations. Blackstone has put USD1 billion of equity into Asian real estate this year.
According to a report by Bloomberg, Blackstone's property acquisitions in Asia this year range from Chinese shopping malls to Australian office buildings. Since making its first deal in the region in 2007, the private equity firm has invested USD7 billion in about 30 transactions, including USD3 billion of equity.
The flow of deals available to Blackstone is being supported by a decline in fundraising in the region. It is also supported by the sales by funds approaching the time when they must return cash to investors, the report said.
Bloomberg, citing British research firm Preqin Ltd., said that private equity firms and banks created 31 property funds in Asia totaling USD7.8 billion last year. This is down from the 52 funds totaling USD30 billion created in 2008.