Saturday 1 October 2016

Blackstone property boss bullish on New York and Miami

Sarah Mulholland

Published 07/10/2015 | 02:30

In the Miami area, Blackstone's Invitation Homes unit owns single-family homes for rent.
In the Miami area, Blackstone's Invitation Homes unit owns single-family homes for rent.

Jon Gray, global head of real estate at Blackstone Group, said the private equity firm is "bullish" on rental housing in New York and Miami, two cities where high home prices make purchases more difficult, sending tenants to the landlord's apartments and houses.

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Blackstone, the world's biggest alternative-asset manager, and partner Fairstead Capital recently acquired Manhattan apartment buildings with almost 1,000 units for $690m (€613m).

In the Miami area, Blackstone's Invitation Homes unit owns single-family homes for rent.

"At the very high end in places like New York and Miami, I'd be a little more cautious" in the short term, Gray, 45, said Tuesday at the Bloomberg Markets Most Influential Summit 2015 in New York. "Long term, am I bullish on Miami and New York as residential places? I am."

Blackstone has built the largest real estate business in private equity, with $91.6bn of property assets under management as of June 30. The New York-based firm gathered $15.8bn for its latest real estate fund, and its seven previous global property funds have doubled their invested capital, with annualised returns of 18pc after fees since 1994, according to the company's most recent earnings statement.

In the wake of the financial crash Blackstone emerged as a major investor in Ireland, snapping up assets and stakes in businesses and properties including Eircom and the former Burlington Hotel.

Blackstone recently put two Dublin office blocks up for sale, less than two years after it bought them from Nama. The eight storey Bloodstone building and Central Quay are on the market with a guide price of around €130m. (Bloomberg)

Irish Independent

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