LONDON—Blackstone Group LP is buying Max Property Group Plc for $707 million. Max Property made an announcement earlier this week, after numerous news articles citing anonymous sources appeared in the European business press in recent days.

"Max has performed extremely strongly since its listing in 2009, achieving its key objectives of acquiring a substantial portfolio of assets at a time of market distress and managing them intensively to generate market leading returns,” said chairman Aubrey Adams in a statement released Wednesday.

“As Max was established with a limited life strategy, the board has always been mindful of its duty to identify the best possible route to crystallise the company's success in a way that would secure the optimal exit for shareholders. This approach from Blackstone, one of the world's largest and best funded property investors, delivers that opportunity at a price which fully recognizes Max's current and future value.” The cash deal will take place through Marina Topco Ltd., a wholly-owned subsidiary of Blackstone Real Estate Partners Europe IV, and is conditional on shareholders' approval, Max Property said in statements issued this week.

Max Property, based in Jersey, was created in 2009. The company plans to distribute most of the sale proceeds to its shareholders, along with a previously announced $56 million payout, the company said. Before Blackstone made its buyout bid, Max Property had laid plans to sell its assets separately over the course of two years.

Shares in Max Property climbed 8.2% Tuesday in London trading, giving it a market value of 370 million pounds. The company buys UK properties and lifts their value through renovations and improving occupancy.

Blackstone is led by CEO Stephen Schwarzman, and has been among the most successful leveraged-buyout firms to expand into real estate, credit and hedge funds.