Blackstone Ramps Up Nordic RE Presence

OSLO—The Blackstone Group has ramped up its Nordic real estate presence in a big way, with affiliates of Blackstone Real Estate Partners Europe IV agreeing to buy 10 portfolios managed by Obligo Investment Management AS for a total of approximately NOK 22 billion, or US$2.7 billion. In a related deal, Blackstone is taking a 34% stake in the operational businesses of investment manager Agasti Holding ASA, which include Obligo.

The NOK 250-million (approximately US$30.5 million) investment in Agasti's businesses, which includes the company's entire operational business in Norway and Sweden, is being structured as a drop-down. Agasti will establish a new company, Obligo BX Holding AS, and transfer all of its operating businesses to that company. Blackstone will then acquire 34% of Obligo Holding.

Oslo-based Obligo has about US$8 billion in assets under management. Real estate comprises US$6.2 billion of that total, and runs the gamut from residential to office to seniors housing, according to the company's website.

“We have had a longstanding ambition to increase our presence in the Nordics,” says James Seppala, senior managing director in Blackstone's real estate group and head of European acquisitions. “Following the acquisition of the real estate portfolio managed by Obligo, we will have a real estate portfolio in the Nordics which fits our investment strategy well. In addition, we will gain access to an experienced management team who will be responsible for a large part of our combined Nordic real estate portfolio.”

Obligo will continue managing a number of the portfolios it's selling to Blackstone, along with certain other portfolios not included in this transaction. Agasti and Blackstone are looking to jointly pursue further real estate transactions and to potentially build up a leading position in the Nordic real estate market. In partnership with Agasti's management team, Blackstone will determine how to operate and develop the combined business.