As per a recent report, the private-equity real estate funds' largest manager, Blackstone Group LP, has decided to purchase General Electric Co.'s U. S. apartment properties, 80 in number.
A person having knowledge about the agreement told on the condition of anonymity that the buyout is worth some $2.7 billion. Since, the deal is not public as yet.
It is one of the biggest investments made by Blackstone in the US apartments, said the report. The country has seen increasing rental demand sending vacancies to a decade's buck level.
Reis Inc. said that Blackstone, based in New York, has cracked down on purchase of single-family homes in residential real estate to rent. For the same, it has made a spending of over $5 billion. More than 30,000 houses have been acquired by the American-based multinational in the country as a result of the foreclosure crisis.
The report said that the latest purchase being made by Blackstone is being seen since apartment stocks have plunged from the highs. There is a 1.4% fall in the Bloomberg Apartment Real Estate Investment Trust Index over the past year. In comparison, the broader Bloomberg REIT index went up by 9.6% and the Standard & Poor's 500 Index saw a 23% return.
GE has been stripping its real estate holdings in an effort to lessen its finance division.
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