Blackstone Eyes European Real Estate Opportunities Amid Easing Central Bank Rates: Report

BY Benzinga | ECONOMIC | 11/28/23 07:16 AM EST

Blackstone Inc. (BX) is reportedly seeing a plethora of buying opportunities in real estate across Europe as central banks become less aggressive with rate hikes. 

The private equity giant favors deals involving data centers, warehouses, and student housing across Europe, Blackstone CEO Steve Schwarzman said in the Bloomberg Television interview.

"The deal business is not totally in mothballs and these things start again," Schwarzman told Bloomberg. "I think we're more on that side of the cycle, although it has been somewhat dreary for a year."

Also Read: Blackstone Forays Into Indian Healthcare Sector Through Stake In Care Hospitals: Report

Earlier this month, Blackstone collaborated with investors such as Permira to acquire Adevinta ASA, the report read. 

This purchase, one of the largest buyouts of the year, valued the European online classifieds company at approximately E14 billion ($15 billion), including debt, it added.

The statements were made on the sidelines of the U.K.'s Global Investment Summit in London.

The investment summit is attended by prominent executives and bankers, including Jamie Dimon of JP Morgan Chase & Co. .

Schwarzman highlighted that the U.K. continues to be an attractive destination for investment, citing its legal system, universities, and expertise in life sciences, per the Bloomberg report. 

Also See: Blackstone Faces Mixed Trends But Holds Long-Term Growth Potential, Analyst Says

He pointed to Blackstone's new London headquarters as a reflection of his confidence in the U.K.

Previously, Schwarzman was part of a panel with British Prime Minister Rishi Sunak, where he emphasized the need for businesses to rapidly integrate artificial intelligence technology, the Bloomberg report read. 

Schwarzman also expressed that this month's meeting between China and the U.S. should aid in improving relations between the two nations.

"I have a simple rule - I only invest in places that I'm willing to visit twice," Schwarzman told Bloomberg.

Read Next: Apple's iPhone 15 Boosts Global Smartphone Sales, Ending 27-month Decline: Report

Price Action: BX shares are trading higher by 0.41% to $107.19 premarket on the last check Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article