Reuters – Blackstone Selling Some of Office Building Portfolio

Private equity firm Blackstone Group is selling some of its office building assets but is not working on an imminent bulk sale of its portfolio, Reuters wrote Tuesday, following a Wall Street Journal report. Blackstone is also considering listing the portfolio as a real estate investment trust, the journal said quoting real estate executives who have engaged in discussions with the firm.

(Reuters) – Private equity firm Blackstone Group LP is selling some of its office building assets but is not working on an imminent bulk sale of its portfolio, a person directly familiar with the matter said on Tuesday following a Wall Street Journal report.

 

Blackstone is also considering listing the portfolio as a real estate investment trust, the journal said quoting real estate executives who have engaged in discussions with the firm.

 

The company’s office portfolio, which comprises more than 100 buildings and about 50 million square feet of space, has been valued around $22 billion by analysts, the WSJ said.

 

The report said New York-based Blackstone has begun pruning the office portfolio and is readying it for a bulk sale that could come as early as next year.

 

But the source familiar with the matter said that while some assets in the portfolio, such as 1411 Broadway in Manhattan, and some Northern California properties, were being sold, no marketing plan for the whole portfolio existed and Blackstone planned to be opportunistic in its divestments.

 

Blackstone has to return money to investors in its funds that typically liquidate after seven to 10 years, WSJ said. Blackstone declined to comment.