Blackstone wins Centro’s U.S. malls for $9.4B

TRD New York /
Feb.February 28, 2011 10:16 AM

Blackstone Group is set to buy the U.S. shopping mall assets of Australian landlord Centro Properties Group for $9.4 billion after beating out bids from a Morgan Stanley-Starwood Capital partnership and a joint venture of NRDC Equity Partners and Area Property Partners, the Wall Street Journal reported. The deal, which includes 588 shopping centers, would be Blackstone’s largest since its acquisition of Hilton Worldwide in October 2007 and indicates an optimistic bet on U.S. retail, according to Bloomberg News. Among the properties Blackstone is slated to take over is Yonkers’ Highbridge Plaza, as well as several malls in Westchester and Long Island. Centro’s struggling U.S. portfolio, which is around 88 percent leased, has $8 billion in debt. The company, whose liberal U.S. acquisition strategy during the real estate boom came back to haunt it after the market crashed, will use the extra $1.4 billion from the sale to keep its Australian operations afloat as an independent company. [WSJ] and [Bloomberg]

Related Articles

Canarsie Plaza and Blackstone’s Kathleen McCarthy (Credit: Google Maps and Blackstone)

Blackstone picks up Canarsie shopping plaza for $130M

Blackstone Chairman Stephen Schwarzman (Credit: Blackstone via YouTube)

It will make you laugh, it will make you … cringe: Blackstone’s latest holiday video

1412 Broadway (Credit: Google Maps)

Isaac Chetrit lands $210M refi for Garment District office building

55 Hudson Yards, Facebook CEO Mark Zuckerberg (Credit: Google Maps and Getty Images)

Here’s how much Facebook is paying at Hudson Yards

Jonathan Gray

Moving out: Blackstone sells remaining stake in Invitation Homes

Blackstone's Jonathan Gray (Credit: Getty Images and iStock)

Here’s a look at Blackstone’s industrial plays after its record-breaking portfolio purchase

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

October Issue is Live

The Real Deal‘s October issue is now available to subscribers!