Filed under: Deals, Blackstone Group L.P (BX)
Since 1992, Blackstone (NYSE: BX) has been a big player in the real estate business, striking over 200 deals amounting to about $103 billion. Some of its transactions include Hilton ($26.9 billion), Equity Office Properties Trust ($38.6 billion) and Trizec Properties, Inc. ($9.2 billion).
Well, it looks like Blackstone is ready for more dealmaking as the firm has raised $10.9 billion for its next fund (Blackstone Real Estate Partners VI).
But isn’t there a credit crunch? That’s true. What’s more, there are signs of problems in the commercial real estate sector.
However, it looks like Blackstone is going to focus on global markets. Something else: with the dislocations in the U.S. financial markets, there may be some good valuations.
A key advantage with Blackstone is that it has leverage across a big portfolio of existing real estate, as well as operating companies. In other words, I suspect the firm will have tiny trouble putting the billions to work.
In today’s trading, Blackstone’s stock is up 2.58% to $16.29.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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