Blackstone Group LP is about to launch its Asia Focused Real Estate Fund. Blackstone Group hopes to seize the Asian real estate market with this fund.
Blackstone Group is considered as the largest private real estate firm in the whole world. The firm has revealed its plans to launch another real estate fund in Asia.
Blackstone’s CEO Schwarzman uncovered the firm’s plans to become the largest commercial real estate buyers in India. The firm is said to have its eyes on real estate market Australia.
Blackstone group was set up in the year 1985 by Stephen Schwarzman and Peter Peterson. Primarily the firm was best-known for its PQ (private equity) funds. It is still known for this. Now it has become the largest real estate (private) firm of the whole world. The value of its real estate assets mounted up to $53.5 billion.
While addressing the Goldman Sachs’ financial services conference in NY, Blackstone’s President Tony James revealed the firm’s plan to launch an Asia Focused real estate fund. The media was not given any details of the fund.
Real estate assets make up only 25% of the firm’s total assets. Yet, this is the most profitable business of the firm. Figures show that a nearly half of its total profit in the 3Q was drawn from by real estate dealings.
Recently Blackstone had raised a global real estate fund. This fund worth $13.3 billion is counted as the largest real estate fund.
James claimed that Blackstone Group’s competitors are washed away by the collapse of real estate. Now the firm has a unique position and an upper hand in the sector.
James disclosed the Blackstone’s current strategy. It aims to snap up troubled real estate assets and turning them around to sell them with 20 % returns. The firm will find takers who look for 5 or 6 % returns. According to James real estate market is the sole market where simultaneous buying and selling take place. However, this is the second real estate fund of Blackstone focused on Asia.
