Blackstone exec sees more upside in real estate
The increased number of foreign buyers of U.S. real estate should continue to grow, and property prices can appreciate further, said Jonathan Gray, global head of real estate at investment firm Blackstone Group LP, the biggest owner of single-family homes in the United States.
Gray also said he expects single-family home values and construction to rise over the next several years.The Blackstone real estate chief said demand for U.S. real estate is strong among Chinese investors as well as sovereign-wealth funds worldwide.
The recent $1.95 billion sale of the Waldorf Astoria New York by Hilton Worldwide Holdings Inc. to Anbang Insurance Group Co. of China may typify foreign investment in U.S. real estate going forward.
“The market is not deeply depressed … It’s not 2006/2007,” Gray said, citing relatively light current use of leverage to finance real estate and little evidence of a market bubble. [Wall Street Journal] – Mike Seemuth