NEW YORK CITY-Private-equity giant Blackstone Group LP is in discussions to acquire a distressed 16-building office portfolio from a Morgan Stanley real estate fund for around $800 million, the Wall Street Journal reported. The buildings, which are located across the country, were acquired by the fund from Glenborough Realty Trust in 2006.
The WSJ reported that while the Morgan Stanley fund has sold several of the Glenborough properties, it decided to transfer the remaining buildings to Blackstone rather than repay approximately $820 million in loans. Blackstone already holds $225 in junior debt on the properties, which allows the buyout group to take control and assume the remaining debt of around $600 million, according the WSJ.
The deal would mark another major transaction for Blackstone. Other notable deals year-to-date include the firm’s $9-billion acquisition of Centro Properties Group’s US portfolio and the $473.1 million purchase of 36 shopping centers from Equity One during the summer.
To read the entire WSJ article, click here.
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