Blackstone strikes biggest European RE deal of 2016 with $3.6B OfficeFirst buy

Miami /
Nov.November 09, 2016 01:00 PM

From the New York websiteIn Europe’s largest property deal this year, private equity giant Blackstone Group has agreed to pay $3.6 billion for OfficeFirst, the real estate subsidiary of Germany’s IVG Immobilien AG.

Last month, IVG — which is one of Germany’s largest property companies — gave up on an initial public offering of OfficeFirst because of investor concerns about market volatility. The company then turned down a private sale offer from Blackstone [TRDataCustom], which raised the ire of the roughly 30 hedge funds that own it, the Wall Street Journal reported.

But on Tuesday, the two companies reached an agreement. The terms are similar to Blackstone’s offer last month, according to the Journal. Blackstone will pay around 22 euros (roughly $24 USD) per share, Reuters reported.

OfficeFirst has 97 properties worth around 1.3 billion euros, the Journal reported. The deal will add 15 million square feet of mainly office space across six major cities, including Berlin and Frankfurt, to Blackstone’s global portfolio.

In an earnings presentation last month, Blackstone told analysts that its dry powder crossed the $100 billion threshold for the first time. Due to inflated asset prices and interest rates at record lows, Blackstone had difficulty finding highly attractive investments that could yield double-digit returns for its customers.

The company sold $7.2 billion worth of real estate last quarter, thanks largely to the $6.5 billion sale of Strategic Hotels & Resorts to Anbnag Insurance. [WSJ]Miriam Hall


Related Articles

arrow_forward_ios
Medley Commerce Center in Medley, 15998 Walgreens Dr in Jupiter, 4281 & 4341 W 108th St in Hialeah, 3701 Flamingo Rd, 2601 & 2701 SW 145th Ave in Broward and 11801 NW 102nd Ave in Medley (Google Maps, Getty)
Here are South Florida’s biggest industrial sales of 2022
Here are South Florida’s biggest industrial sales of 2022
Blackstone’s Stephen Schwarzman and the Hampton Inn hotel at 5701 Madison Avenue (Google Maps, Getty)
Blackstone sells Tamarac Hampton Inn for $18M
Blackstone sells Tamarac Hampton Inn for $18M
G6 Hospitality CEO Rob Palleschi and the Motel 6 at 825 East Dania Beach Boulevard (LinkedIn, Google Maps)
Blackstone sells five South Florida budget hotels for $61M
Blackstone sells five South Florida budget hotels for $61M
Link Logistics' Luke Petherbridge with 115.7-acre site at 21001 Northwest 27th Avenue (LinkedIn, Google Maps)
Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
Link Logistics' Luke Petherbridge (Link Logistics, Calder Casino, iStock)
Take two: Blackstone affiliate proposes industrial complex with movie studio at Calder’s horse racing track
Take two: Blackstone affiliate proposes industrial complex with movie studio at Calder’s horse racing track
 Rendering of Nema Miami with Russell Galbut and Bruce Menin (Crescent Heights)
Russell Galbut’s Crescent Heights scores $224M loan for Whole Foods-anchored Edgewater project
Russell Galbut’s Crescent Heights scores $224M loan for Whole Foods-anchored Edgewater project
The Mangrove Bay assisted living facility at 110 Mangrove Bay Way in Jupiter (Senior Lifestyle, iStock)
Blackstone sells waterfront assisted living facility in Jupiter at a loss for $41M
Blackstone sells waterfront assisted living facility in Jupiter at a loss for $41M
Laguna Pointe Apartments are at 903 Southwest 15th Street in Pompano Beach, 25370 Southwest 137th Avenue in Homestead and Sanctuary Cove Apartments at 5301 West McNab Road in North Lauderdale (Redfin, Apartments.com, Google Maps)
Blackstone goes all-in on South Florida affordable housing with over $300M portfolio deal
Blackstone goes all-in on South Florida affordable housing with over $300M portfolio deal
arrow_forward_ios

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

Loading...