BLACKSTONE PLANS EUROPEAN INFRASTRUCTURE FUND INITIALLY TARGETING UP TO $2 BILLION - BLOOMBERG NEWS | March 3, 2023 . Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. The Arch Co. said it had cleared 50 percent of the backlog of outstanding rent reviews within the first 12 months, lower than its target of 80 percent because of the onset of Covid-19. But in the intervening years, alternative asset classes have emerged: build-to-rent property, storage, even prisons and schools. At Grosvenor, he made a name for himself as an expert in securing planning rights during his work on a former biscuit factory in south London. We continue to have full confidence in the core Sponda portfolio and its management team, whose priority remains delivering high-quality retail and office assets.. Please call 0800 445522 if you require an up to date offer price for this fund. Blackstone will review opportunities for prime offices in the UKs largest regional cities that offer similar fundamentals to that of Birmingham. Entrepreneurs like Dean are happy. Over the summer, The Arch Co. made two announcements. On Wednesday, the BREIT said it was forced to limit withdrawals for the fourth straight month. 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. A week after she started working on a business plan for a plant shop, she heard about the opportunity to take on an empty retail unit on Kingland, with free rent and business rates for the first two years. LandSec announce this week that 6-9 Harbour Exchange, occupied by Equinix and offered as its LD8 IBX data center, has been sold to Blackstone European Property Income Fund (BEPIF). The firm bought a portion of Facebooks Dublin campus towards the end of last year for 395m for its core-plus platform. Blackstone Blackstone is buying the asset on behalf of Blackstone European Property Income Fund, a new perpetual life vehicle targeting the individual investor market. The company has now defaulted on a $562.5 million bond backed by a portfolio of offices and stores owned by the Finnish company Sponda Oy. 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. The Arch Co. says this information is necessary to establish concessionary rates. 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. 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. How the biggest companies plan mass lay-offs, The benefits of revealing neurodiversity in the workplace, Tim Peake: I do not see us having a problem getting to Mars, Our ski trip made me question my life choices, Michelle Yeoh: Finally we are being seen, Apocalypse then: lessons from history in tackling climate shocks, How Glasgows tiny, muckraking crime mag stays afloat. n/a: Street Address 1 Street Address 2; 2-4, Rue Eugene The basis of a lot of the decisions that were made in the past have been undermined by what has happened [during the pandemic], says Johnston from PwC. Blackstone turned its attention towards office opportunities in the UK regions towards the latter part of last year. Many UK commercial landlords are looking to diversify into mixed-use properties and focus on higher-return opportunities as the pandemic erodes the valuations of retail and office spaces, and an extended moratorium on rent hurts their income streams. graduation. BPPEH - Blackstone Property Partners Europe Holdings Blackstone Blackstone said the sudden influx of speedy grocery-delivery companies in this part of London is a result of demand from these companies for space, rather than the result of any company strategy. Blackstone describes the arches as a unique portfolio within its real-estate division. Blackstone European Property 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. The office has achieved an excellent BREEAM environmental and sustainability rating. Blackstone to take over Canary Wharf data centre 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. 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. Join over 300,000 Finance professionals who already subscribe to the FT. During your trial you will have complete digital access to FT.com with everything in both of our Standard Digital and Premium Digital packages. All the courses are of global standards and recognized by competent authorities, thus Date Filed. The fund had its first close and The sale price reflects a net initial yield of 3.99%. In that case, the owner has to be good at producing what occupiers want and at filling gaps, says Bill Hughes, head of real assets at LGIM. Check if your She has been in ministry over 30 years; and along with her husband is a Senior Pastor of New Genesis Christian Center, Inc. Brooklyn, NY. View. 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. Marcus Geddes, Managing Director Central London at Landsec said: The sale of It came on the heels of the news that The Arch Co. was getting a new chief executive, Craig McWilliam. Because in todays backdrop, where rates are so low, where a traditional 60-40 portfolio just isnt generating enough return in both appreciation of the underlying assets and also income, investors and advisers are realizing that to generate the income and return on a risk-adjusted basis, [you need alternatives], Todd Myers, senior managing director and chief operating officer of Blackstone Private Wealth Solutions, told Citywire. Blackstone has launched a European property income strategy, offering investors access to a range of real estate sectors across the region. 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. There are lots of features, but with the emergence of online retailing, this sector called retail has been facing headwinds for some time.. I was in search of an online course; Perfect e Learn LGIM would not confirm where Kingland sits within its fund portfolio, saying only that its retail assets are found across a number of funds. Side-letter deals risk inflating the market, Guardians of the Arches has warned, as the contracted amounts are often different from the amounts being paid. Digital Forensics. 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. WebSince joining the firm in 2014, Mr. Jay has been involved in the financing of all European real estate investments including asset, stock and portfolio-level financings and in (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 The deal is due to complete before the end of the year. At LGIM, Ibrahim is living out his consumer-driven fantasies. 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. A year and an intervention from the mayor of London later, Grosvenor was granted permission to convert the site into more than 1,500 homes to rent. Equinix-occupied data center in London sold to Blackstone for Our online courses offer unprecedented opportunities for people who would otherwise have limited access to education. have discontinued my MBA as I got a sudden job opportunity after 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. 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. Dr. Judy Brown travels across the globe with a prophetic word for the masses. 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. Something, it seemed, needed to be done. He once boasted that prior to joining Grosvenor, he had bought a building off it on behalf of Fortress Investment Group, a U.S. investment giant, and had sold it on for 1 million more than he had paid before he had even signed the contract. 2022. (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. When I called in June, she said journalists were calling every day to hear about the scheme. Ibrahim had spent time at BNP Paribas working on something called commercial placemaking that was supposed to bring together two streams of real-estate asset management: rent yields and occupiers and the underlying spaces and places. Even before Covid-19, a commercial real-estate portfolio of that size was risky. Helical and Ashby Capital achieve first letting at The JJ Mack Building. 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Performance Blackstone Acquires Logistics Portfolio for 520 As part of the project, LGIM Real Assets is giving ten businesses a shop on Kingland, where Dean opened her plant shop, with no rent or business rates for the first two years. It was a stark reminder that real estate as an asset class doesnt lend itself to quick, easy sales. Can Shell close the valuation gap with US rivals? So I jumped ship, he says. Blackstone Real Estate Income Trust If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for $69 per month. At the time of the downgrade, 297.1 million of the senior loan remained outstanding, according to Fitch. Document Type. Small- and medium-size enterprises still made up 90 percent of occupants, unchanged across the year. 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. Seventy-five percent of units were filled in 2019, and The Arch Co. is now in talks to fill the remaining properties. tuition and home schooling, secondary and senior secondary level, i.e. In October 2019, they had hired Denizer Ibrahim as head of retail and something they called futuring. Ibrahim, who describes himself as a recovering architect, came to LGIM with a background in urban planning and a mandate to completely rethink how LGIM did retail. For a full comparison of Standard and Premium Digital, click here. Blackstones notes have now matured and have not been repaid, prompting loan servicer Mount Street to determine a default, according to a statement Thursday. blackstone The well-heeled investors in the $69 billion Blackstone Real Estate Income Trust Inc. learned Thursday the fund will limit withdrawals as people seek to pull money from whats been a cash magnet for one of the largest owners of real estate globally. The loan was originated by Citigroup Inc. and Morgan Stanley and is secured against 45 properties in Finland, most of which are offices. You can now write for wionews.com and be a part of the community. In 2018, Grosvenor applied for planning permission to convert the old factory site into more than 1,300 homes to rent. Landsec said the completion of the Harbour Exchange sale to Blackstone European Property Income Fund will take place before the end of the year. Hanna Ozkoch, who runs the Arches Cafe, a working-mens cafe in Bethnal Green, said The Arch Co.s plan to more than double her rent from 16,000 to 35,000 was totally impossible. We serve working-class people and just cant charge obscene prices, she told a journalist from the London Times in December. Lunar time zones: How do you tell the time in space. Uzraudzba 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. Luxembourg: Blackstone European Property Income Fund Associates (Lux) S. r.l. All Rights Reserved. Blackstone The West Midlands Growth Company (WMGC) recently leased office space in the property. "We continue to see strong demand for high quality, sustainable office spaces that attract the best talent and employers" - JAMES SEPPALA, BLACKSTONE. Read more: Pimco, Brookfield Office Defaults Signal Deepening Property Pain. In 2016, tenants of the railway arches had formed a trade association called Guardians of the Arches to oppose steep rent increases. The changing makeup of these portfolios is a signal to investors that the landscape in commercial real estate has irrevocably changed. But with debt mounting, a sale was seen as preferable. Blackstone raises 250m for European Property Income fund in Enter McWilliam, a man from a family of surveyors his father and his wife are both in the trade. situation of undertakings for collective investment at Toronto-Dominion Bank has agreed to pay $1.2 billion to settle allegations that it aided the scheme by banking Stanford Financial despite a flurry of suspicious activities. (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. I was already a teacher by profession and I was searching for some B.Ed. "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. 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 Retail real estate was given such a big allocation because it was considered the most secure investment, written on long leases and offering an investor ten or 25 years of secure income. fund sells pan-European logistics portfolio for 520m Blackstone Clearly the world has changed. The purchase is understood to reflect a net initial yield of around 5%, a level considered relatively attractive compared to other core markets the investor operates in. Ive never owned a shop before in my life, says Hope Dean, who now runs a plant store in a shop that had been empty for six years on Kingland Crescent, an unloved shopping street near the train station in Poole, a seaside town on Englands south coast. Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. And because Network Rail still owned the tracks, the British taxpayer would foot the bill to inspect and maintain the structures, while Blackstone could focus on filling empty arches and revaluing tenanted ones. Please add some widgets by going to. 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. Then the pandemic hit, and what was a bad situation for U.K. retail became immeasurably worse. The portfolio is about 45% vacant, having risen about 10 percentage points higher during the pandemic, according to the report. A glowing piece in The New York Times had just come out touting LGIMs work in Poole and its new leasing model, offering tenancies as short as three months and contracts with rents based on the companys earnings, known as turnover leases. Some investors are taking radical measures. 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. an increase of 2.91% over one month. A year later, M&Gs U.K. property fund was still to reopen. You can still enjoy your subscription until the end of your current billing period. 125000+ Industry Leaders read it everyday. our Subscriber Agreement and by copyright law. Dean was working as an events manager when her job was swiftly made redundant by the pandemic. That experience matters with a portfolio where surveyors are heading to arbitration over the issue of how much the retail space is worth per square foot and how value might be increased by raising rent, changing the size of the lease, or changing the use. But Blackstone had sold off about 16 buildings to pay down nearly half of the note, which now has an outstanding balance of 297.1 million euros, according to Fitch Ratings. SEC FORM D 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. personalising content and ads, providing social media features and to What the SPR Refill Means for Oil Futures, Modern Slavery Act Transparency Statement. 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. You may change or cancel your subscription or trial at any time online. Then theres the free rent. Blackstone acquired Sponda for almost 1.8 billion in 2018. Ask James Seppala, head of real estate in Europe at Blackstone, how his strategy has changed in the last three years and hell tell you Blackstone is interested in three areas: logistics, rental housing, and life sciences. The universe of investment is wider, and the appeal of real estate has materially changed, Hughes says. Blackstone defaults on a $562.5 real estate bond payment Blackstone, with $649 billion under management, could weather a year. But there are signs that it is increasingly hunting for assets to give both institutional and individual investors exposure beyond the traditional portfolio. In this article. But some tenants have said that the information requested is excessive. For non-personal use or to order multiple copies, please contact My childs preference to complete Grade 12 from Perfect E Learn was almost similar to other children. In April, Legal & General Investment Management (LGIM), which manages 1.3 trillion in assets, launched what it is calling a blueprint for the future of the high streets. The trick? +44 (0) 7917 839 251, AshbyCapital | AshbyCapitalData Protection Notice, Communicate With Tenants To Unleash Real Estates Sustainability Potential, Q+A: Ashby Capital's Ferrari on why values will stabilise this year. 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 the U.K., institutional investors and pension funds with commercial real estate in their portfolio have been forced into this cuddly arrangement in the knowledge that shareholders everywhere are watching. Shakey Nordic Property Values Impact Investors Like Blackstone. [L4N2RU1BV], UK's Landsec sells London office property to Blackstone for $263 million, This sprinting robot could become your next beach lifeguard, Domino effect as more EU institutions ban TikTok on work devices, TikTok is setting time-limits for teens. Angus Johnston, U.K. leader of real estate at PwC, says the relationship between landlord and tenants is irrevocably changed. 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.. WebRepresents direct real estate investments and Blackstones open-ended European Core+ fund for institutional investors, as of December 31, 2022. Asset owners and real estate investors plowed money into Nordic real estate after the 2008 global financial crisis. BEPIF Feeder SICAV - I. AA-EUR Cap - LU2339811098. 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, Covid-19 has accelerated the growth of e-commerce penetration, particularly in continental Europe, we believe, where e-commerce was relatively under-penetrated. He points to the success of Mileway, a logistics company owned by Blackstone that focuses on the last mile before delivery. 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. 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. The company has now defaulted on a $562.5 million bond backed by a portfolio of offices and stores owned by the Finnish company Sponda Oy. Blackstones income-focused European real estate vehicle has bought a 520m logistics portfolio from Macquarie Capital Principal Finance and Elite Partners Capital. Blackstone 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. Theres going to have to be a reset, and thats never an easy experience. Johnston says investors will increasingly find themselves in a situation where the financial viability of the investment is linked to the success of the tenant and that investors will get ahead by using data creatively to figure out how to change the terms of their offer. Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. The future for many of these tenants is unclear. The Guardians have called for local and central governments to review how rent valuations are conducted. and other data for a number of reasons, such as keeping FT Sites reliable and secure, There are signs LGIM is trying to reduce this funds exposure to retail: In the second quarter of 2021, it disposed of four assets, including two high-street shops and a retail warehouse park.