October 15, 2021
Blackstone, Brookfield Say Now’s The Time To Make Deals As Treasury Policy Changes Loom

Perhaps the two biggest giants in global commercial real estate are in "let's make a deal" mode.  Brookfield Asset Management CEO Bruce Flatt...

Blackstone, Brookfield Say Now’s The Time To Make Deals As Treasury Policy Changes Loom

October 6, 2021 | Matthew Rothstein

Perhaps the two biggest giants in global commercial real estate are in “let’s make a deal” mode.

Brookfield Asset Management CEO Bruce Flatt and Blackstone Group President Jon Gray both said that their companies have been motivated to sell assets in the past few months. After over a year of historically low interest rates and cash hoarding by major companies, the global market is at a liquidity peak, the two agreed at a virtual conference hosted and reported by Bloomberg.

Both companies and their various affiliates have also been active on the buyer side, and Brookfield indicated in August that it is targeting $25B in property sales to fund other activities. But with deals like Blackstone’s most profitable sale ever (a Las Vegas casino in which the sale price was triple what Blackstone paid) closing in late September, the companies’ recent behavior backs up their leaders’ words.

The current environment may not last much longer with the Federal Reserve indicating that just a little more recovery from the U.S. economy will spur changes to the agency’s bond-buying policy and short-term interest rate, which has remained near zero since last year, CNBC reports. As soon as interest rates rise, debt to fund transactions will become more expensive.

To the extent that Brookfield and Blackstone are buying, the two have been focused on acquiring companies more than individual properties. Blackstone paid a premium to acquire data center operator QTS for $10B in June, and it has also bought companies in the affordable housing and single-family rental sectors this year.

For large capital outlays, businesses with the potential for internal growth represent a better strategy than fixed-income investments, which provide “nowhere to hide,” Gray said at the Bloomberg conference. Still, neither Gray nor Flatt came out and said the current market overall is peaking.

Source: Bisnow

 

Recent

ExchangeRight’s Essential Income REIT Now Tracked by Blue Vault

ExchangeRight’s Essential Income REIT Now Tracked by Blue Vault

Warren Thomas, a managing partner at ExchangeRight, shared that this reporting relationship will help educate advisors about the Essential Income REIT's successful performance to date, broadening its reach to more investors who need the kind of stable income that the REIT has historically generated.

Most Popular

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…
Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now