The firm has used Side-letter deals risk inflating the market, Guardians of the Arches has warned, as the contracted amounts are often different from the amounts being paid. An announcement was made in 2017 that Sponda would enter into an agreement to sell all of its shares to a fund managed by the world's largest asset manager, Blackrock. The Arch Co. says this information is necessary to establish concessionary rates. "We continue to see strong demand for high quality, sustainable office spaces that attract the best talent and employers" - JAMES SEPPALA, BLACKSTONE. The social aspect to that is something people are increasingly aware of.. We believe it has accelerated the shift toward e-commerce on the one hand, benefiting the logistics sector, but on the other, impacting certain subsectors within physical retail., In logistics, its the last mile that he finds most interesting. Ive never owned a shop before in my life, says Hope Dean, who now runs a plant store in a shop that had been empty for six years on Kingland Crescent, an unloved shopping street near the train station in Poole, a seaside town on Englands south coast. Leveraged Loan 100 Index (the Our online courses offer unprecedented opportunities for people who would otherwise have limited access to education. The US investor has completed the purchase of the Colmore Building, a 314,000 sq ft office block, from Ashby Capital. Shares of the private-equity firm fell 1.6% after news of the default was first reported by Bloomberg. The Blackstone European Property Income Fund (BEPIF) has acquired a EUR 520 mln pan-European logistics portfolio from Elite Logistics Fund I. WebElite Logistics Fund sells pan-European logistics portfolio to Blackstone European Property Income Fund Singapore-based Elite Logistics Fund has successfully | 18 comments on LinkedIn As at 30 June 2021, the total net assets of undertakings for collective investment, comprising UCIs subject to the 2010 Law, specialised investment funds and SICARs, amounted to EUR 5,487.526 billion compared to EUR 5,332.392 billion as at 31 May 2021, i.e. https://www.wsj.com/articles/blackstone-property-fund-targeting-small-investors-passes-50-billion-11642510801. This copy is for your personal, non-commercial use only. or Travel restrictions then hampered Blackstones sales efforts before the war in Ukraine unleashed a fresh wave of volatility. WebBLACKSTONE EUROPEAN PROPERTY INCOME FUND (MASTER) FCP (LEI# 2221003VMKVL7LLZ3957) is a legal entity registered with LONDON STOCK EXCHANGE LEI LIMITED. university USD. Fill all that empty store space by giving it to entrepreneurs for free. Document. She is also the author of several books, including Seven Keys to Living in Victory, I am My Beloveds and The Cup Bearer. Its still a massive risk to open a shop in the pandemic, she says. Copyright 2023 ETRealty.com. Distribution and use of this material are governed by Everything were launching is being measured to work out how we create a holistic strategy.. The deal also showed that there is a growing need for good commercial property in the area, especially in Finland. That ban is significant: Many tenants will not be able to afford to pay back the money owed, and in many cases, The Arch Co. has said it will not allow any more rent arrears discounting. The bond, which was underwritten by Citigroup and Morgan Stanley, was originally secured against 63 mostly office buildings in Finland. Blackstone Inc. is a leading asset management giant and a prolific real estate investor. McWilliam previously worked at Grosvenor, an ancient, global property company owned by a royal, the Duke of Westminster. Last week, Landsec said it had bought a 75% stake in MediaCity, the UK's biggest tech and media hub outside London, for $580 million, just two days after it announced the purchase of UKs Land Securities Group Plc said on Friday that it has agreed to sell Harbour Exchange, a London office property, to Blackstone Inc for 196.5 million pounds ($262.82 million) as the commercial landlord reshuffles its portfolio. MBA is a two year master degree program for students who want to gain the confidence to lead boldly and challenge conventional thinking in the global marketplace. If youd like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial. After buying the building, Peter Ferraris firm fully let the space following a refurbishment and rebranding program in 2016. by Andrea Zander Macquarie Capital Principal Finance, in partnership with Singaporean real estate fund Elite Partners Capital, has sold its first pan-European logistics portfolio, Elite Logistics Fund I, to Blackstone European Property Income Fund (BEPIF) for 520 million ($587 million). Meg Hillier, the politician in charge of Britains Public Accounts Committee, called the deal a fire sale to plug a debt, and asked the U.K.s National Audit Office to look into it. The works included improving the reception and common parts and the addition of new facilities including a coffee house, gym, treatment rooms and cycling facilities including luxury changing rooms and a drying room. Blackstone Inc. defaulted on a 531 million ($562 million) bond backed by a portfolio of Finnish offices and stores as rising interest rates hit European property values. Through this (Harbour Exchange) disposal, we are recycling capital into opportunities where we can bring to bear Landsecs skills and expertise to drive growth and returns for our investors, said Marcus Geddes, managing director, Central London, at Landsec. Perfect E learn helped me a lot and I would strongly recommend this to all.. With that downpour a couple of weeks ago, we had rain coming through the ceiling. Among tenants, the mood is combative a world away from the symbiotic partnership described as the future of commercial real-estate asset management. On Londons crumbling high streets, two massive real-estate investors are banking on opposing strategies. Blackstone, with $649 billion under management, could weather a year. Blackstone has dramatically debuted in the UKs regional office market after securing an office in Birmingham for 182m as part of its European core-plus yield-oriented strategy, React News can reveal. Some investors are taking radical measures. have discontinued my MBA as I got a sudden job opportunity after The Arch Co. said these properties needed capital investment investment that required borrowing beyond the power of a public entity like Network Rail. Small- and medium-size enterprises still made up 90 percent of occupants, unchanged across the year. When I called in June, she said journalists were calling every day to hear about the scheme. And because Network Rail still owned the tracks, the British taxpayer would foot the bill to inspect and maintain the structures, while Blackstone could focus on filling empty arches and revaluing tenanted ones. April 8, 2020, Blackstone (NYSE:BX) today announced the final close on its sixth European opportunistic real estate fund, Blackstone Real Estate Partners Europe Retail real estate was given such a big allocation because it was considered the most secure investment, written on long leases and offering an investor ten or 25 years of secure income. (Bloomberg) -- Blackstone Inc. defaulted on a 531 million ($562 million) bond backed by a portfolio of Finnish offices and stores as rising interest rates hit European property values. Document Type. graduation. Andy Street, the Mayor of the West Midlands, said: This is yet another vote of confidence in the West Midlands as we bounce back from the pandemic, and completes an investment hat trick for Blackstone with their existing investments in the NEC as well as St Modwens regeneration of the former Longbridge factory site.. The property fund would not reopen until October, seven months later. A week after she started working on a business plan for a plant shop, she heard about the opportunity to take on an empty retail unit on Kingland, with free rent and business rates for the first two years. "We continue to have full confidence in the core Sponda portfolio and its management team," the company added. Commentators called the deal a bet on the economic prospects of Britain in the aftermath of Brexit and in the middle of what many had already identified as the terminal decline of the high street. In mid-August, a handful of business owners gathered in an arch in east London to discuss these developments and how they could resist rent hikes and eventual eviction. You can still enjoy your subscription until the end of your current billing period. The address is 2-4 RUE EUGNE In April 2020, it banned commercial property landlords from demanding rent arrears or evicting tenants. Then the pandemic hit, and what was a bad situation for U.K. retail became immeasurably worse. The fund is located in New York, New York. Blackstone Inc. is a leading asset management giant and a prolific real estate investor. Through its new Blackstone European Property Income Fund, the US investment manager Blackstone has acquired a logistics platform from Singapore-based Elite Partners Capital and Macquarie Capital for 520 million. Kingland had been in the works since 2018. Nonetheless, The Arch Co. says its occupancy figure has remained stable throughout the pandemic a remarkable achievement given the rates of closure for small businesses nationally. Offices had delivered 88 percent of their rent, but retail just 61 percent. LandSec announce this week that 6-9 Harbour Exchange, occupied by Equinix and offered as its LD8 IBX data center, has been sold to Blackstone European Property Income Fund (BEPIF). The office has achieved an excellent BREEAM environmental and sustainability rating. Property values are dropping in Europe as rising interest rates put off buyers until a clearer picture about how far rates will rise emerges. This debt relates to a small portion of the Sponda portfolio, a Blackstone representative said in an emailed statement. 2023 proptech predictions | End of 'period of exuberance'? We would suggest, as would most CIO offices, by having almost all assets in a daily liquidity structure, you give up return and income, Myers said. Learn more Detail: https://www.bepif.com/ 2 [PDF] Performance and Fee Report Fiscal Year 2020 2021.xlsm Author: nctreasurer.com Published: 06/05/2022 Review: 4.61 (553 vote) Ive worked out how many plants I have to sell a week to break even., Giving away store space was not a decision LGIM took lightly. Blackstones European Property Income strategy, which allows eligible individual investors access to income-producing European real estate, has raised approximately 250m of capital in its first close. In that case, the owner has to be good at producing what occupiers want and at filling gaps, says Bill Hughes, head of real assets at LGIM. This month, Blackstone raised 250 million ($290 million) for its Blackstone European Property Income Fund, giving private investors access to its flagship European Core+ real-estate fund, usually reserved for institutional investors. The whole question of the data that you need to be a successful landlord how you decide what data you need, how you collect it, how you analyze it, how you distribute it is going to be a really interesting piece, Johnston says. Blackstone will review opportunities for prime offices in the UKs largest regional cities that offer similar fundamentals to that of Birmingham. This file may have been moved or deleted. WebBlackstone European Property Income Fund Master FCP; Firm: Fund # CIK # 0001886201: Sale: Fund: Phone: 2125835000: Address: 1113 Boulevard de La Foire Grand Duchy of Luxembourg, Luxembourg L-1528: Source: Fund AUM and Sold ($) 1.0 0.8 0.6 0.4 0.2 0.0 2009 2013 2017 2022: Fund Details; Director: Custodian: Auditor: Marketer: At the time of the downgrade, 297.1 million of the senior loan remained outstanding, according to Fitch. This platform comprises 12 assets that were purchased individually by the previous owners. Dear user, ET RealEstate privacy and cookie policy has been updated to align with the new data regulations in European Union. +44 (0) 20 3075 1940, Henry Columbine He says landlords are going to have a much closer understanding of the financial performance of their tenants and the different ways in which value is accrued to the tenant through the tenancy just as The Arch Co. is requesting to see the financial data of its tenants, and as LGIM is using turnover leases for new tenants and leveraging data analytics to be more fluid and flexible in the way it fills legacy shopping centers. Change the plan you will roll onto at any time during your trial by visiting the Settings & Account section. The US office market has been particularly hard hit by the pandemic-induced shift to home working. In 2016, tenants of the railway arches had formed a trade association called Guardians of the Arches to oppose steep rent increases. The deal is due to complete before the end of the year. What the SPR Refill Means for Oil Futures, Modern Slavery Act Transparency Statement. WebThe Blackstone Group International Partners LLP (BGIP) is a limited liability partnership registered in England and Wales under number OC352581 and is authorised and Posted on 03/02/2023. Adam Dakin, managing director for new business and services at Telereal, denied that The Arch Co. was planning to drive up revenue solely by raising rents, pointing out that 900 of the arches were vacant at the point of sale, mostly due to poor condition, and were ripe for redevelopment. On Wednesday, the BREIT said it was forced to limit withdrawals for Toronto-Dominion Bank has agreed to pay $1.2 billion to settle allegations that it aided the scheme by banking Stanford Financial despite a flurry of suspicious activities. Luxembourg: Blackstone European Property Income Fund Associates (Lux) S. r.l. Macquarie Capital in partnership with Singaporean real estate fund Elite said they have sold Elite Logistics Fund I to Blackstone European Property Income Fund, a This content is only available to registered users You must be logged in to continue Register for free to finish this article. Where once an investor thought it owned a lease with a reliable income, comparable to a bond income,it now owns a relationship with the underlying market in other words, a tenant. In 2018, Grosvenor applied for planning permission to convert the old factory site into more than 1,300 homes to rent. Right away, its purchase of commercial real estate in railway arches marked a departure from the funds usual buy it, fix it, sell it strategy of refurbishing unloved properties and selling them for a huge profit, in favor of a buy-and-hold approach. Angus Johnston, U.K. leader of real estate at PwC, says the relationship between landlord and tenants is irrevocably changed. In 2018, Blackstone acquired Sponda.Despite the acquisition, Sponda operated as an independent company within the Blackstone portfolio, with its operations and management remaining largely unchanged. Birmingham has been one of the best performing office markets in Europe over the past year in terms of vacancy for prime grade A, currently sitting around 5% vacancy, which Blackstone believes will accelerate rental growth in the Midlands city. an increase of 2.91% over one month. Blackstone, with $649 billion under management, could weather a year without 80 million of rental income. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. Related Persons. The strategy is an expansion of Blackstone Real Estates perpetual core-plus business, which has $116bn of assets under management globally. Four FREE articles of your Many UK commercial landlords are looking to diversify into mixed-use properties and focus on higher-return opportunities as the pandemic erodes the valuations of retail and office spaces, and an extended moratorium on rent hurts their income streams. For non-personal use or to order multiple copies, please contact But Blackstone had sold off about 16 buildings to pay down nearly half of the note, which now has an outstanding balance of 297.1 million euros, according to Fitch Ratings. Increasingly, landlords are going to be providing space, whether its retail or office, on a more flexible basis, with rents that are more tied to performance. After the moratorium on rent increases ended in June, Mackinnon and several other tenants on the street were facing steep rent increases to match new tenants on the street. The court of the adjudicating officer, or AO, issued the warrant on February 7 after hearing the complaints of the allottee, HRERA said in a official statement. (Bloomberg) -- Blackstone Inc. defaulted on a 531 million ($562 million) bond backed by a portfolio of Finnish offices and stores as rising interest rates hit European property values. The deal was valued at approximately $1.9 billion and was one of the largest real estate transactions in the Nordic region at the time. Contact Information Follow @ETRealty for the latest news, insider access to events and more. Entrepreneurs like Dean are happy. The purchase was part of BlackRock's plan to grow its ability to invest in real estate in Europe and to get a bigger share of the Nordic market. S&P Report (Nov-2022) Rating Agency Reports. At LGIM, Ibrahim is living out his consumer-driven fantasies. Landsec said the completion of the Harbour Exchange sale to Blackstone European Property Income Fund will take place before the end of the year. Hanna Ozkoch, who runs the Arches Cafe, a working-mens cafe in Bethnal Green, said The Arch Co.s plan to more than double her rent from 16,000 to 35,000 was totally impossible. We serve working-class people and just cant charge obscene prices, she told a journalist from the London Times in December. LGIM made a bet: Two years of no income will be rewarded by creating a sustained stream of income that will grow in line with inflation, creating security of income over the long term. They called the new entity The Arch Co. Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. Net income 2023: 6 452 M--Net Debt 2023: 8 587 M--P/E ratio 2023: 17,9x: Continue reading your article witha WSJ subscription, Already a member? It is Blackstones first office acquisition outside of London in the UK, although it has had previous exposure to regional offices through non-performing loans. Be sure to check your spelling. Dean was working as an events manager when her job was swiftly made redundant by the pandemic.