Blackstone Group Inc. closed this month on the most important real-estate debt fund ever, giving the investment agency loads of money…
to lend to property traders trying to buy groceries throughout the coronavirus pandemic.
One of many world’s largest homeowners of economic property, Blackstone started elevating cash for the fund within the spring of 2019 and the $eight billion it took in exceeded expectations, mentioned Jonathan Pollack, international head of Blackstone Actual Property Debt Methods. Fundraising received a lift after Covid-19, partly as a result of rates of interest fell, rising the attraction of comparatively high-yielding actual property debt.
“There’s an expectation that there will probably be a larger alternative in actual property debt than there was,” Mr. Pollack mentioned in an interview.
The fund will make new loans and purchase real-estate debt securities together with different investments. Blackstone’s real-estate debt enterprise has grown to $26 billion of property debt belongings underneath administration, up from $10 billion 5 years in the past. Total, its international real-estate portfolio is valued at $329 billion.