Blackstone Group Senses Real Estate Opportunities in Current Market
Written on September 25, 2009 – 2:21 pm | by admin
According to reports from a webcast from a recent Barclays Capital conference webcast, Blackstone Group chief operations officer Tony James has expressed optimism regarding real estate opportunities in 2009 that the company has not felt confident about in the last two years. James believes that the market has bottomed out now and that Blackstone, a private equity firm with more than $12 billion in capital they are prepared to invest, must move forward and begin buying.
Between 2005 and 2007, the company sold off real estate assets totalling around $60 billion, but now they have three deals on the table that should be more indicative of their present direction. Blackstone will focus its investments on distressed seller properties and discounted debt such as a selection of senior living properties from Sunwest.
James sees the stronger stocks and bonds markets as good omens, but still recognized that the global economy remains weak and that in response to this, Blackstone must remain cautious in their financial endeavors.
In addition to their real estate investments, Blackstone intends to invest heavily in the credit markets by continuing to buy up debt tied to major corporations such as Hilton Hotels, Biomet and Kohlberg Kravis Roberts & Co’s Dollar General.
The company estimates it will pay out $1.20 distribution to its public shareholders for 2009.