Blackstone’s Jonathan Gray bullish on emerging markets

"People need your capital more," in such areas, Gray said

New York /
Feb.February 17, 2014 05:40 PM

Jonathan Gray of the New York City-based Blackstone Group has plans to invest roughly $80 million in real estate in the year ahead — but his eye is cast overseas.

The firm will be investing more capital in the international market, Gray told the assembled crowd at the Harbor Investment Conference Thursday, because developing countries “are beginning to look much more interesting.” As capital has recently fled from China, India and Brazil and other burgeoning markets, a void is emerging that he is eager to fill, he told the crowd.

While many investors view emerging markets as too scary because of concerns about opaque governments, the residential bubble bursting in China or corruption in India, Gray said that the uncertainty can prove beneficial to investors. As others’ funds drip away, “our capital gets treated better,” he said. “You can buy things at a more favorable price because people need your capital more.”

He described Europe, meanwhile, as “a distress story,” and said that while he sees good signs in the hotel business there, the economy as a whole is “not a rocket ship.”

Blackstone Group ended its tremendous 2013 with a fourth-quarter profit of $621.3 million — a more than five-fold increase from $106.4 million in the fourth quarter of 2012, according to its latest earnings report.[Bloomberg News]Julie Strickland


Related Articles

arrow_forward_ios
Blackstone eyes return to hotel business as real estate fuels strong Q2
Blackstone eyes return to hotel business as real estate fuels strong Q2
Blackstone eyes return to hotel business as real estate fuels strong Q2
Starrett-Lehigh Building at 601 West 26th Street and 1740 Broadway (iStock, EQ Office, Suma Industries)
Commercial landlords shake up offices to lure tenants back
Commercial landlords shake up offices to lure tenants back
Blackstone's Kathleen McCarthy and Ken Caplan with 31-30 Hunters Point Avenue in Long Island City (Blackstone, Google Maps)
Blackstone picks up LIC warehouses for $37.5M
Blackstone picks up LIC warehouses for $37.5M
Blackstone’s Jon Gray and Skyview Mall at 40-24 College Point Blvd (Getty, Shops at Skyview)
Blackstone lands $285M CMBS refi for Flushing’s Skyview mall
Blackstone lands $285M CMBS refi for Flushing’s Skyview mall
Starwood CEO Barry Sternlicht and Blackstone CEO Stephen Schwarzman (Getty)
Blackstone, Starwood up bid for Extended Stay America
Blackstone, Starwood up bid for Extended Stay America
Blackstone Mortgage Trust CEO Katie Keenan (Blackstone, iStock)
Blackstone mortgage REIT names new CEO
Blackstone mortgage REIT names new CEO
Blackstone’s Jon Gray (Getty)
There’s “lots of runway in real estate”: Blackstone’s Jon Gray
There’s “lots of runway in real estate”: Blackstone’s Jon Gray
345 Park Avenue and Blackstone President Jonathan Gray (Google Maps, Twitter)
Blackstone expands Manhattan HQ
Blackstone expands Manhattan HQ
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...