In mid-August, a handful of business owners gathered in an arch in east London to discuss these developments and how they could resist rent hikes and eventual eviction. This debt relates to a small portion of the Sponda portfolio, a Blackstone representative said in an emailed statement. Simply log into Settings & Account and select "Cancel" on the right-hand side. Why Blackstone | BEPIF | Blackstone European Property Income Blackstone, with $649 billion under management, could weather a year without 80 million of rental income. This platform comprises 12 assets that were purchased individually by the previous owners. In 2018, Blackstone acquired Sponda.Despite the acquisition, Sponda operated as an independent company within the Blackstone portfolio, with its operations and management remaining largely unchanged. The pandemic has both accelerated and disrupted certain trends, he says. Landsec has sold 6-9 Harbour Exchange in Londons Docklands to Blackstone European Property Income Fund (BEPIF) for 196.5m. On Wednesday, the BREIT said it was forced to limit withdrawals for the fourth straight month. 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, Blackstone is buying the asset on behalf of Blackstone European Property Income Fund, a new perpetual life vehicle targeting the individual investor market. The sale price reflects a net initial yield of 3.99%. Mileway has grown to occupy 14 million square meters across ten countries. 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. Most people want to expand on their business at home, not take on the risk of a whole shop. Performance Blackstone's $71 billion unlisted real estate income trust (BREIT), which also defaulted, has run into trouble. Tenants have noticed that the kinds of businesses coming in are not the same as the ones leaving. Commentators called the deal a bet on the economic prospects of Britain in the aftermath of Brexit and in the middle of what many had already identified as the terminal decline of the high street. Related Persons. +44 (0) 20 3757 6890 The Blackstone European Property Income Fund (BEPIF) has acquired a EUR 520 mln pan-European logistics portfolio from Elite Logistics Fund I. This investment is a vote of confidence in Birmingham, its thriving commercial heart, and the wider West Midlands. Its not just Blackstone. Date Filed. Blackstone fund keeps limits on outflows as redemption London W1U 4DA If owners and local authorities dont do this, its quite hard to see how these towns and cities will recover., Perhaps even more importantly, Hughes says, in an era where ESG is king, the social responsibility plays out well with stakeholders and shareholders. Please add some widgets by going to. The works included improving the reception and common parts and the addition of new facilities including a coffee house, gym, treatment rooms and cycling facilities including luxury changing rooms and a drying room. 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. Blackstone, with $649 billion under management, could weather a year without 80 million of rental income. 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. The company was founded in 2000 and has been listed on the Helsinki Stock Exchange since 2006. Blackstone 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. or According to Landsec, the sale to Blackstone European Property Income Fund will be completed before the end of the year. In 2018, Grosvenor applied for planning permission to convert the old factory site into more than 1,300 homes to rent. But with debt mounting, a sale was seen as preferable. by Andrea Zander Macquarie Capital Principal Finance, in partnership with Singaporean real estate fund Elite Partners Capital, has sold its first pan-European logistics portfolio, Elite Logistics Fund I, to Blackstone European Property Income Fund (BEPIF) for 520 million ($587 million). The office has achieved an excellent BREEAM environmental and sustainability rating. The fund is located in New York, New York. Blackstone If you're happy with cookies click proceed. WebBLACKSTONE EUROPEAN PROPERTY INCOME FUND (MASTER) FCP (LEI# 2221003VMKVL7LLZ3957) is a legal entity registered with LONDON STOCK EXCHANGE LEI LIMITED. 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. 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. Landsec sells London office property to Blackstone for 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. Property When the pandemic hit, The Arch Co., under pressure from tenants, agreed to suspend rent negotiations with tenants and set up a 10 million hardship fund, which it said would pay for rent-free periods for 1,450 of the most severely affected tenants. Blackstone launches European real estate income fund BLACKSTONE EUROPEAN PROPERTY INCOME FUND (MASTER) FCP Blackstone European Private Credit Fund (Master) FCP (03.06.2022) BLACKSTONE EUROPEAN PRIVATE CREDIT FUND SICAV; BLACKSTONE EUROPEAN SENIOR DEBT FUND III LEVERED SCSP (20.07.2022) Blackstone Global Feeder Fund ICAV. 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? The family-owned cafes and the migrant-run mechanics are shutting up shop. Blackstone Inc. is a leading asset management giant and a prolific real estate investor. All Rights Reserved. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. The default occurred as rising interest rates hit European property values. The social aspect to that is something people are increasingly aware of.. BX. Through its new Blackstone European Property Income Fund, the US investment manager Blackstone has acquired a logistics platform from Singapore-based Elite Partners Capital and Macquarie Capital for 520 million. WebFeb 2022 by Property Forum | Investment Savills, together with Eastdil Secured, has advised Macquarie Capital Principal Finance and Elite Partners Capital on the sale of a pan-European logistics portfolio, Elite Logistics Fund I to Blackstone European Property Income Fund (BEPIF) for 520 million. Where once an investor thought it owned a lease with a reliable income, comparable to a bond income,it now owns a relationship with the underlying market in other words, a tenant. The whole question of the data that you need to be a successful landlord how you decide what data you need, how you collect it, how you analyze it, how you distribute it is going to be a really interesting piece, Johnston says. Landsec sells Docklands office for 196.5m The purchase was part of BlackRock's plan to grow its ability to invest in real estate in Europe and to get a bigger share of the Nordic market. Youre going to have a more symbiotic partnership between landlords and tenants, he says. When I called in June, she said journalists were calling every day to hear about the scheme. Blackstone Adam Dakin, managing director for new business and services at Telereal, denied that The Arch Co. was planning to drive up revenue solely by raising rents, pointing out that 900 of the arches were vacant at the point of sale, mostly due to poor condition, and were ripe for redevelopment. WebCode. Blackstone Property Fund Targeting Small Investors Passes $50 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. Luxembourg: Blackstone European Property Income Fund Associates LP : Cayman Islands: Blackstone European Property Income Fund Associates Ltd. Cayman Islands: Contact Information There is going to be a role for real estate in retail going forward, Johnston says. The drop in prices has so far not led to widespread credit losses, so some creditors are betting that rapid sales can still ensure debt is fully repaid. (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 property values. If youd like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial. Educational programs for all ages are offered through e learning, beginning from the online Almost 30 million square feet of retail space permanently closed across the U.K. in 2020 alone. BLACKSTONE EUROPEAN PROPERTY INCOME FUND Compare Standard and Premium Digital here. You can now write for wionews.com and be a part of the community. Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. These colossal brick buildings, once filled with vibrant concessions, bored teenagers, and middle-aged women queuing with trays in lunch canteens, now lie dark and empty in the center of many U.K. towns, their shuttered doors a physical manifestation of the rot that has set into the retail sector. Equinix-occupied data center in London sold to Blackstone for 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. The firm has used the fund, known as BREIT, to buy rental-apartment buildings, warehouses, office buildings, casinos and other property types. The new fund will likely come with a minimum investment commitment of about 25,000 euros ($29,860), according to people with knowledge of the matter. The Blackstone European Property Income strategy will be comprised of approximately 90% direct property investment, with up to 10% held in "real estate-related debt and liquid instruments". Document Type. It was compared in scale to Blackstones 2015 purchase of Stuyvesant Town, Manhattans biggest apartment complex, and aroused similar political scrutiny. In August, Glenny, a U.K. property management company, announced that it had been appointed to market a portfolio of 114 Arch Co.-owned units in London with rental value worth 2.1 million a year. You can still enjoy your subscription until the end of your current billing period. Had a great experience here. fund sells pan-European logistics portfolio for 520m Offices had delivered 88 percent of their rent, but retail just 61 percent. 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, Bloomberg News reported, as rising interest rates hit European property values. In Europe, many commercial-mortgage backed securities are maturing in 2023 and 2024 face high refinancing risks. 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. Were not saying the Dolphin Centre is doomed; were saying it requires careful, thoughtful, remedial activities to give it a long-term future, he says. 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. 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