Transactions - JULY 3, 2014

Blackstone buys assets on three continents

by Andrea Waitrovich

The Blackstone Group has continued its high-priced spending. This week the firm has completed several acquisitions in three separate transactions on three continents.

In New York City, the firm has reportedly become the owner of the 615,850-square-foot Park Avenue Tower in midtown Manhattan. Blackstone paid approximately $750 million. The seller was Shorenstein Properties, which purchased the 36-story tower in 2008 for approximately $665 million.

Across the Atlantic, Blackstone’s European logistics platform, Logicor, signed an agreement with SEB Asset Management. The firm has acquired 18 logistics properties in eight countries, totaling 4.7 million square feet for €275 million ($376 million).

The 18 properties are from four different portfolios. Three properties with a current market value of approximately €37 million ($51 million) are from the open-end real estate fund SEB ImmoInvest, 10 properties with a current market value of just under €168 million ($229.4 million) are from SEB ImmoPortfolio Target Return Fund, four properties worth approximately €62 million ($85 million) are from SEB Global Property Fund’s property portfolio, and one logistics building is from an SEB special fund.

And Down Under, Blackstone has completed its purchase from Mirvac. The sale was a 50 percent interest in Westpac Place, located at 275 Kent St. in Sydney. The total transaction sales price was based on a value of A$873 million ($819 million). In addition to the purchase of 275 Kent St., Blackstone finalized agreements to buy seven noncore assets from Mirvac for A$417 million ($391.4 million).

Last month, Blackstone and DDR formed a $1.975 billion joint venture to acquire American Realty Capital Properties’ shopping centers. 

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