Blackstone buys real estate funds in $3B record-breaking deal

CalPERS sale marks largest-ever secondary transaction

New York /
Nov.November 12, 2015 04:10 PM

A Blackstone fund agreed to buy $3 billion worth of stakes in private real estate funds from California’s public pension fund CalPERS in what it claims is the real estate industry’s largest-ever secondary-market deal.

Blackstone Strategic Partners, a so-called fund of funds that doesn’t buy assets directly but invests in other private funds, is taking over stakes in 43 global and U.S. real estate funds through the deal.

CalPERS has announced plans to manage more of its private portfolio actively – as opposed to relying on fund managers – and the $3 billion sale appears to be part of that strategy.

The deal is a secondary transaction, meaning Blackstone isn’t buying any real estate assets directly, but rather shares in funds that own real estate.

“This is a marquee transaction for the real estate secondaries industry,” Mark Burton, Head of Strategic Partners’ Real Estate business, said in a statement. “We partnered with CalPERS to deliver a solution for a premier organization seeking to reduce its non-strategic portfolio through the sale of non-core holdings.”

Blackstone bought Strategic Partners from Swiss bank Credit Suisse in 2013. – Konrad Putzier


Related Articles

arrow_forward_ios
Silvercup Studios in Long Island City, NY (Getty)

The rise of soundstage real estate, by the numbers

The rise of soundstage real estate, by the numbers
Blackstone's Stephen Schwarzman and President Donald Trump (Getty)

Blackstone’s Schwarzman defends Trump on exec call

Blackstone’s Schwarzman defends Trump on exec call
Blackstone's Jonathan Gray, Madison Realty Capital's Josh Zegen (Getty; Madison; iStock)

Property debt investors raising money but still looking for distress

Property debt investors raising money but still looking for distress
Blackstone Group president Jonathan Gray (Getty)

Blackstone makes $1.2B deal with Brookfield for self-storage company

Blackstone makes $1.2B deal with Brookfield for self-storage company
Consumers are using streaming services more than ever, and data center real estate is booming (iStock)

Real estate for data centers is having a moment

Real estate for data centers is having a moment
Blackstone’s Stephen Schwarzman, Roku CEO Anthony Wood and Coleman Highline in San Jose (Blackstone; Wikipedia Commons; Coleman Highline)

Blackstone buys Roku’s Silicon Valley office buildings

Blackstone buys Roku’s Silicon Valley office buildings
Blackstone’s Kathleen McCarthy with 440 Saw Mill River Road, Ardsley, New York and 1000 Gateway Boulevard in San Francisco, California (left) (Blackstone; BioMed Realty)

Blackstone bets big on life-science buildings with $14.6B deal

Blackstone bets big on life-science buildings with $14.6B deal
Blackstone Real Estate Debt Strategies' Jonathan Pollack (Blackstone; iStock)

Blackstone assembles biggest real estate debt fund ever

Blackstone assembles biggest real estate debt fund ever
arrow_forward_ios

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

Loading...