blackstone european property income fund

Blackstones income-focused European real estate vehicle has bought a 520m logistics portfolio from Macquarie Capital Principal Finance and Elite Partners Capital. Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. In 2016, tenants of the railway arches had formed a trade association called Guardians of the Arches to oppose steep rent increases. Harrods chief shrugs off recession fears because rich get richer, FCA regulator blamed for Arms decision to shun London listing, Argentina diary: Come armed with $100 bills, There are no domestic equity investors: why companies are fleeing Londons stock market, The stark challenge facing the London stock market, Humanity is sleepwalking into a neurotech disaster, The Murdaugh trial: a southern gothic tale that gripped the nation, Who to fire? Blackstone has taken a very different approach. cookies 2022. Property values are dropping in Europe as rising interest rates put off buyers until a clearer picture about how far rates will rise emerges. Thats why so many small businesses are leaving.. Seventy-five percent of units were filled in 2019, and The Arch Co. is now in talks to fill the remaining properties. McWilliam previously worked at Grosvenor, an ancient, global property company owned by a royal, the Duke of Westminster. Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. There is going to be a role for real estate in retail going forward, Johnston says. I dont think its right to abandon towns and cities around the U.K. just because the retail proposition isnt working, says Hughes, head of real assets. Theyre asking top-dollar rent for shabby conditions, he told the other traders at the August meeting. Lab leak theory: 3 years on, will we ever know where COVID came from? Andy Street, the Mayor of the West Midlands, said: This is yet another vote of confidence in the West Midlands as we bounce back from the pandemic, and completes an investment hat trick for Blackstone with their existing investments in the NEC as well as St Modwens regeneration of the former Longbridge factory site.. Last week, Landsec said it had bought a 75% stake in MediaCity, the UKs biggest tech and media hub outside London, for $580 million, just two days after it announced the purchase of regeneration firm U+I for $260 million. Blackstone Group Inc., the worlds largest private equity firm, is planning to start a European property fund aimed at mom-and-pop investors. Par consquent, le You can still enjoy your subscription until the end of your current billing period. Macquarie Capital Principal Finance (Macquarie Capital) in partnership with Singaporean real estate fund, Elite Partners Capital (Elite) have announced the sale of its first pan- European logistics portfolio, Elite Logistics Fund I to Blackstone European Property Income Fund (BEPIF) for 520 million. We use cookies to ensure the best experience for you on our website.If you choose to ignore this message, we'll assume that you are happy to receive all cookies on ET RealEstate. It also has more shopping centers, department stores, and insolvency regulations including company voluntary arrangements that make it easier for retailers to break leases. Peter Ferrari, chief executive of AshbyCapital, said: Having purchased The Colmore Building in 2015 when it was 40% vacant, this sale marks the successful completion of our asset strategy. Blackstone acquired Sponda for almost 1.8 billion in 2018. (Bloomberg) -- Blackstone Inc. defaulted on a 531 million ($562 million) bond backed by a portfolio of Finnish offices and stores as rising interest rates hit European property values. Blackstone describes the arches as a unique portfolio within its real-estate division. Grade 10 and 12 level courses are offered by NIOS, Indian National Education Board established in 1989 by the Ministry of Education (MHRD), India. In December 2020, one year after it took on the portfolio, The Arch Co. said its churn rate, or the number of businesses leaving, was 7 percent, down from 11 percent under Network Rail, while 150 arches had been brought back into use. Its Managed Property Fund, a 3 billion fund containing 70 assets, is around 20 percent invested in retail, including warehouses and shopping centers. Related Persons. Be sure to check your spelling. Every day of 2020, an average of 48 shops, restaurants, and other leisure and hospitality venues closed permanently across England, Wales, and Scotland, according to figures compiled by the Local Data Co., a research provider, for PwC. or But the 4.5 billion portfolio started causing headaches even before tenants of these assets had a chance to get into arrears. Entrepreneurs like Dean are happy. It is Blackstones first office acquisition outside of London in the UK, although it has had previous exposure to regional offices through non-performing loans. The deal is due to complete before the end of the year. Right away, its purchase of commercial real estate in railway arches marked a departure from the funds usual buy it, fix it, sell it strategy of refurbishing unloved properties and selling them for a huge profit, in favor of a buy-and-hold approach. It opposed the privatization of the arches during the sale and although the privatization succeeded, the tenants managed to get Blackstone to sign a charter, an informal agreement to hold regular meetings and communicate any changes. In a note to investors sent on May 22, 2020, LGIM said its 2 billion U.K. property fund had collected just 76 percent of the rent owed by the end of March. Asset owners and real estate investors plowed money into Nordic real estate after the 2008 global financial crisis. Blackstones notes have now matured and have not been repaid, prompting loan servicer Mount Street to determine a default, according to a statement Thursday. Document. The whole question of the data that you need to be a successful landlord how you decide what data you need, how you collect it, how you analyze it, how you distribute it is going to be a really interesting piece, Johnston says. Guardians of the Arches said that although The Arch Co. hasnt lost any tenants, some have surrendered part of their lease, giving them less space. But as the pandemic accelerated the decline of brick-and-mortar stores, LGIM started to think about its real-estate portfolio more like the build-to-rent sector: Build something people want to rent and offer them a short lease. Blackstone Real Estate Income Trust, a fund sold in increments as little as $2,500, has raised more than $50 billion since it started five years ago. tuition and home schooling, secondary and senior secondary level, i.e. Offices had delivered 88 percent of their rent, but retail just 61 percent. This content is only available to registered users You must be logged in to continue Would you like to read more? Then theres the free rent. We would suggest, as would most CIO offices, by having almost all assets in a daily liquidity structure, you give up return and income, Myers said. "The company has incorporated a wholly owned subsidiary named Reliance SOU (RSOUL) to carry on, inter alia, the business of development of properties for commercial use," it said in a BSE filing. As consumer preferences continue to evolve, our sense is that the demand for distribution centers in infill locations may increase.. A few years ago, LGIM investors, which include corporate pension funds and public-sector funds worth trillions, might also have thought the idea of giving away rentable shops to first-time entrepreneurs was crazy. This file may have been moved or deleted. Jon Gray, President and COO of Blackstone. Blackstone has launched a European property income strategy, offering investors access to a range of real estate sectors across the region. This is not as expensive as you may think, Ibrahim says. In pursuing its investment objective, the Fund seeks to outperform the Markit iBoxx USD Liquid Leveraged Loan Index (the Primary Index) and the Morningstar LSTA U.S. Awarding Excellence Across the Indian Real Estate .. Harbour Exchange, located in the Docklands area, comprises two redeveloped office buildings, housing datacentre and office space, and was let to Equinix (UK) Ltd with an unexpired lease term of nearly 20 years. The universe of investment is wider, and the appeal of real estate has materially changed, Hughes says. Through its new Blackstone European Property Income Fund, the US investment manager Blackstone has acquired a logistics platform from Singapore-based Elite Partners Capital and Macquarie Capital for 520 million. He says landlords are going to have a much closer understanding of the financial performance of their tenants and the different ways in which value is accrued to the tenant through the tenancy just as The Arch Co. is requesting to see the financial data of its tenants, and as LGIM is using turnover leases for new tenants and leveraging data analytics to be more fluid and flexible in the way it fills legacy shopping centers. IA-EUR Cap - LU2339810876. Blackstone had asked the bondholders for Airbnb lays off staff from recruiting team to become a more focused company, Rupee and Taka to replace Dollar as currency of exchange between India, Bangladesh, World Bank commits $1 billion to support Indias public healthcare infrastructure. It is also launching a local market for up to 15 vendors. MBA is a two year master degree program for students who want to gain the confidence to lead boldly and challenge conventional thinking in the global marketplace. The bond, which was underwritten by Citigroup and Morgan Stanley, was originally secured against 63 mostly office buildings in Finland. USD. Where once an investor thought it owned a lease with a reliable income, comparable to a bond income,it now owns a relationship with the underlying market in other words, a tenant. Something, it seemed, needed to be done. Had a great experience here. Blackstone Inc has defaulted on a 531 million euro ($562.5 million) bond backed by a portfolio of offices and stores owned by Finnish company Sponda Oy, Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. Birmingham has been buoyed by major government investment into the city, the expansion of corporates, and north-shoring from the likes of Goldman Sachs. Net income 2023: 6 452 M--Net Debt 2023: 8 587 M--P/E ratio 2023: 17,9x: The portfolio is about 45% vacant, having risen about 10 percentage points higher during the pandemic, according to the report. (Reporting by Jaiveer Shekhawat and Mehnaz Yasmin in Bengaluru; Editing by Anil D'Silva, Shinjini Ganguli and Josie Kao), Ukrainian pilot pair in Arizona to fly military simulators - US official, Another Norfolk Southern train derails in Ohio; company says no toxins aboard, UPDATE 1-China sets economic growth target of around 5% as parliament opens, China to develop more energy and mineral reserves and boost production, China Sets Modest Growth Target as Economic Risks Persist. The Arch Co. said these properties needed capital investment investment that required borrowing beyond the power of a public entity like Network Rail. SC asks Authum Investments to implement resolution plan for Reliance Home Finance22 hrs ago, Uttar Pradesh CM meets aggrieved Noida homebuyers, assures 'complete solution'22 hrs ago. Our online courses offer unprecedented opportunities for people who would otherwise have limited access to education. The Guardians have called for local and central governments to review how rent valuations are conducted. analyse how our Sites are used. Bondholders voted against a further extension, the people said, asking not to be identified as the sales process was not public. Blackstone's $71 billion unlisted real estate income trust (BREIT), which also defaulted, has run into trouble. Adam Dakin, managing director for new business and services at Telereal, denied that The Arch Co. was planning to drive up revenue solely by raising rents, pointing out that 900 of the arches were vacant at the point of sale, mostly due to poor condition, and were ripe for redevelopment. Thats before you even get into the shift to online shopping. In 2018, Grosvenor applied for planning permission to convert the old factory site into more than 1,300 homes to rent. Please add some widgets by going to. According to Landsec, the sale to Blackstone European Property Income Fund will be completed before the end of the year. More than 70 percent of investors believe that U.K. landlords and tenants will have to consider new models for leases after the pandemic, according to a survey by PwC. Erin Peyman, head of property at Weezy, says the company has been working together with The Arch Co., using its property location requirement list to look for its next fulfillment centers. A lot of that capital expenditure had to be paused because of Covid, but as the lockdown eased, The Arch Co. was preparing to bring empty arches which make up a quarter of the portfolio back into use. Posted on 03/02/2023. The new fund will likely come with a minimum investment commitment of about 25,000 euros ($29,860), according to people with knowledge of the matter. April 8, 2020, Blackstone (NYSE:BX) today announced the final close on its sixth European opportunistic real estate fund, Blackstone Real Estate Partners Europe LGIM was tight-lipped on exactly how many retail assets it owns, including shopping malls, retail parks, and U.K. high streets, which are the equivalent of U.S. main streets. In Eastbourne, another south coast town, LGIM is transforming another shopping center with swings, roundabouts, and seating on the theme of play. The Blackstone Israels Window to Strike Iran Narrows as Putin Enters Equation, Tycoon Deripaska Warns Russia May Run Out of Money in 2024, Americans Need to Be Richer Than Ever to Buy Their First Home, Citigroup Cuts Hundreds of Jobs, Including in Investment Banking and Mortgage Units, Fed Speech Scrapped After Participant Shows Porn in Zoom Room. Contact Information Premium access for businesses and educational institutions. The pandemic has both accelerated and disrupted certain trends, he says. It came on the heels of the news that The Arch Co. was getting a new chief executive, Craig McWilliam. Nordic real estate has been at the forefront of Europes real estate correction after a long period of relative calm following the global financial crisis. Fitch downgraded the notes in December, saying that weak macroeconomic outlook and limited appetite for lending against secondary quality illiquid assets create significant challenges for refinancing. UKs Land Securities Group Plc said on Friday that it has agreed to sell Harbour Exchange, a London office property, to Blackstone Inc for 196.5 million pounds ($262.82 million) as the commercial landlord reshuffles its portfolio. Why Blackstone | BEPIF | Blackstone European Property Income Last Name First Name Middle Name; Blackstone Europe Fund Management S.a r.l. This platform comprises 12 assets that were purchased individually by the previous owners. Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. Private equity giant begins buying offices for European core-plus strategy, What: Blackstone has bought the Colmore Building in Birmingham, Why: Ashby Capital exiting for 182m after buying asset in 2015, What Next: US giant interested in further core-plus office opportunities in UK and Europe. Advanced search Blackstone defaults on $562 million Nordic property-backed CMBS - Bloomberg News: RE. The portfolio has been acquired by Elite Logistics Fund I, which is managed by Singapore-based alternative asset manager Elite Partners Capital, over a two-year period and includes twelve [] Kingland had been in the works since 2018. Blackstones European Property Income strategy, which allows eligible individual investors access to income-producing European real estate, has raised approximately 250m of capital in its first close. by Andrea Zander Macquarie Capital Principal Finance, in partnership with Singaporean real estate fund Elite Partners Capital, has sold its first pan-European logistics portfolio, Elite Logistics Fund I, to Blackstone European Property Income Fund (BEPIF) for 520 million ($587 million). Knight Frank advised Blackstone. organisation We regret that the service provider did not move further with our proposal ". With that downpour a couple of weeks ago, we had rain coming through the ceiling. Among tenants, the mood is combative a world away from the symbiotic partnership described as the future of commercial real-estate asset management. Complete information about investing in shares of BREIT is available in the prospectus. It will be offered to investors via the firm's Private Wealth Solutions group for a management fee of 1.25%. The West Midlands Growth Company (WMGC) recently leased office space in the property. The European wager echoes one Blackstone has made in the US, where it struck a record $18.7bn deal to buy a swath of urban warehouses portfolio owned by Singapores GLP. Over the summer, The Arch Co. made two announcements. Critics say it's not enough, World obesity day: How to tackle weight increases in Europe, 6 of the best value for money EVs to make the switch to electric. In Europe, many commercial-mortgage backed securities are maturing in 2023 and 2024 face high refinancing risks. The private equity group said the acquisition is another example of Blackstones long-term conviction in the UK and in high-quality, sustainable office assets in key European cities., James Seppala, head of real estate Europe at Blackstone, said: We continue to see strong demand for high quality, sustainable office spaces that attract the best talent and employers. In this prime urban location, companies like Weezy and Zapp say the arches are ideal places for business. The firm has used the fund, known as BREIT, to buy rental-apartment buildings, warehouses, office buildings, casinos and other property types. Seppala says Blackstones size gives it access to vast amounts of data, allowing it to pursue bigger margins within its portfolios: The scale of the portfolio we manage gives us access to large amounts of proprietary data and real-time information, which is incredibly helpful in informing and guiding our investment strategies.. Aside from its newly added industrial portfolio, Blackstone European Property Income Fund owns the 202,000 square metre (2,174,310 square foot) Proximity Logistics Portfolio across France and Germany, the 22,000 square metre Ilot Panhard office hub at a former car manufacturing site in Paris, and the 25,845 square metre 6-9 Harbour Each center will have an events program with book clubs, chess, exercise classes, and yoga plus art on the walls and more flexible, ad hoc retail opportunities like market stalls for entrepreneurs. All Rights Reserved. The risk here is that a landlord will operate on a maximum rent model and there will be an over-saturation of a particular business type to the detriment of the estate, says Leni Jones, managing director of Guardians of the Arches. Constructed in 1989, Harbour Exchange comprises 278,198 sqft of office space and a data centre, currently occupied by Equinix which has an unexpired 20-year lease on the site. And every product piece of the initiative has their own ROI and KPI attached to them, plus a data analysis team and a data dashboard. Even before Covid-19, a commercial real-estate portfolio of that size was risky. Real-estate investment managers are finding their work is becoming more about the service, whether thats making the space more attractive to tenants or being more flexible about contracts. Sponda's portfolio includes office, retail, and logistics properties. Meg Hillier, the politician in charge of Britains Public Accounts Committee, called the deal a fire sale to plug a debt, and asked the U.K.s National Audit Office to look into it. We are disappointed that the servicer has not advanced our proposal, which reflects our best efforts and we believe would deliver the best outcome for note holders. The subtext: It would take a private entity to max out the value of the assets. A group that included the Blackstone Real Estate Income Trust last year acquired the real-estate assets of the Las Vegas Cosmopolitan casino and hotel in Las Vegas. The purchase was part of BlackRock's plan to grow its ability to invest in real estate in Europe and to get a bigger share of the Nordic market. Lunar time zones: How do you tell the time in space. helped me to continue my class without quitting job. Last week, Landsec said it had bought a 75% stake in MediaCity, the UK's biggest tech and media hub outside London, for $580 million, just two days after it announced the purchase of The largest fund administered by Blackstone Group Inc., the giant investment firm known for raising capital from institutions such as pension funds and endowments, is now one that .css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;}mostly targets individual investors. The Blackstone European Property Income Fund (BEPIF) has acquired a EUR 520 mln pan-European logistics portfolio from Elite Logistics Fund I. For a full comparison of Standard and Premium Digital, click here. Through this (Harbour Exchange) disposal, we are recycling capital into opportunities where we can bring to bear Landsecs skills and expertise to drive growth and returns for our investors, said Marcus Geddes, managing director, Central London, at Landsec. The social aspect to that is something people are increasingly aware of.. The deal also showed that there is a growing need for good commercial property in the area, especially in Finland. Please call 0800 445522 if you require an up to date offer price for this fund. (Bloomberg) -- Blackstone Inc. defaulted on a 531 million ($562 million) bond backed by a portfolio of Finnish offices and stores as rising interest rates hit European Blackstone European Property Income Fund is a buyout fund managed by The Blackstone Group. Outside, Deliveroo drivers on bikes pull up near shuttered archways bearing small signs for chain restaurants. The loan was originated by Citigroup Inc. and Morgan Stanley and is secured against 45 properties in Finland, most of which are offices. Shakey Nordic Property Values Impact Investors Like Blackstone. BEPIF Feeder SICAV - I. AA-EUR Cap - LU2339811098. Landsec said the completion of the Harbour Exchange sale to Blackstone European Property Income Fund will take place before the end of the year. Its not just Blackstone. The default occurred as rising interest rates hit European property values. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. In 2018, Blackstone became the U.K.s largest small-business landlord. Birmingham has been one of the best performing office markets in Europe over the past year in terms of vacancy for prime grade A, currently sitting around 5% vacancy, which Blackstone believes will accelerate rental growth in the Midlands city. the 10/12 Board (Reuters) -Blackstone Inc has defaulted on a 531 million euro ($562.5 million) bond backed by a portfolio of offices and stores owned by Finnish company Sponda Oy, as rising interest rates hit European property values. Dr. Judy is a Prophet, Pastor and Life Coach. It seemed like a good investment: Network Rail, swimming in 46.5 billion ($63.9 billion) in debts, had delayed 162 million in investment in the portfolio. Its still a massive risk to open a shop in the pandemic, she says. You can now write for wionews.com and be a part of the community. in KSA, UAE, Qatar, Kuwait, Oman and Bahrain. A quarter of The Arch Co. portfolio across the country is empty but occupation is increasing in this part of east London. S&P Report (Nov-2022) Rating Agency Reports. That ban is significant: Many tenants will not be able to afford to pay back the money owed, and in many cases, The Arch Co. has said it will not allow any more rent arrears discounting. That year, Blackstone partnered with the U.K.s largest privately owned property company, Telereal Trillium, to buy an entire portfolio of commercial real estate off British government-owned Network Rail. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. There is one thing standing in the way of a spate of evictions: The U.K. governments ban on changing the locks in pursuit of Covid-19 commercial rent arrears, which was recently extended to next March. This month, Blackstone raised 250 million ($290 million) for its Blackstone European Property Income Fund, giving private investors access to its flagship European Core+ real-estate fund, usually reserved for institutional investors. All Rights Reserved. Any changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel. Blackstone says it delivered a dividend yield 340 to 440 basis points higher than government bond yields in the 12 months to August 2021, and offered investors a hedge against inflation, since real-estate income increased faster than inflation over the last decade. In the 1990s, most U.K. funds of this scale had real-estate investment trusts split into different asset classes with around half in retail, around 30 percent in industrial real estate, and around 20 percent in office space. n/a: Street Address 1 Street Address 2; 2-4, Rue Eugene Blackstone has taken a very different approach. Its much more important to look at what they want around ESG, to look at carbon capture., This is a massive change of mindset for real-estate investors. 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It was a stark reminder that real estate as an asset class doesnt lend itself to quick, easy sales. test, which makes it an ideal choice for Indians residing WebRepresents direct real estate investments and Blackstones open-ended European Core+ fund for institutional investors, as of December 31, 2022. The changing makeup of these portfolios is a signal to investors that the landscape in commercial real estate has irrevocably changed. WebCode. As at 30 June 2021, the total net assets of undertakings for collective investment, comprising UCIs subject to the 2010 Law, specialised investment funds and SICARs, amounted to EUR 5,487.526 billion compared to EUR 5,332.392 billion as at 31 May 2021, i.e.

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