Blackstone’s Gray said he was “surprised” by Trump meeting

President-elect considered the Democrat for Treasury secretary

TRD MIAMI /
Dec.December 14, 2016 12:45 PM

From the New York website: Blackstone Group’s real estate head Jonathan Gray said he was “surprised” when Donald Trump’s transition team invited him to a meeting last month. “I am a Democrat,” he told Bloomberg News.

Still, he said he took comfort in the meeting “because it signaled that they were reaching out to a broad range of people.”

The Trump team reportedly considered Gray for the position of Treasury secretary last month. He later withdrew his name from consideration.

Gray wouldn’t say whether he would have taken the job if offered, or what exactly he discussed with Trump and his advisers at their meeting in New Jersey. But he did reiterate his earlier claim that Trump’s victory makes stronger economic growth more likely, and said that Blackstone is already adjusting its investment strategy to account for it.

While Gray argued that stronger growth will be good for the real estate industry overall, he cautioned that some core properties could suffer from an expected rise in interest rates, which tends to put upward pressure on cap rates.

“There’s a little more risk on things that are more stabilized, more bond-like, but that’s not a big portion of what we own,” he said.

Asked about China potentially moving to restrict currency outflows, Gray dismissed the suggestion that this could become a problem for Blackstone. The world’s a big place, there’s a lot of liquidity out there,” he said.

In recent years, Blackstone has struck big deals with Chinese investors, selling the Waldorf Astoria and Strategic Hotels & Resorts to Anbang Insurance Group.

“I don’t think we’re going to see a complete cessation of Chinese outbound investment,” Gray added. “But they may make it a little bit harder.” [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Donald Trump with Trump International Golf Club (Credit: Isaac Brekken/Getty Images and Palm Beach Post)

Trump golf club in West Palm seeks rent relief, citing shutdowns

Trump golf club in West Palm seeks rent relief, citing shutdowns
Donald Trump and Mar-a-Lago Club (Credit: MANDEL NGAN/AFP via Getty Images, and iStock)

Trump’s Mar-a-Lago furloughs 153 employees

Trump’s Mar-a-Lago furloughs 153 employees
Shane Neman, and Mauricio Bello Richard Waserstein, with 525 Northwest 77th Street Marriott in Boca

Blackstone sells Marriott hotel in Boca Raton

Blackstone sells Marriott hotel in Boca Raton
Donald Trump, Vanilla Ice and Briny Breezes (Credit: Getty Images)

Trump Town? Briny Breezes wants to sell for $1B

Trump Town? Briny Breezes wants to sell for $1B
Fordome Investment Group’s Kris Rodriguez and Blackstone’s Stephen Schwarzman (Credit: Getty Images, Google Maps)

Blackstone plans to build new Medley warehouse

Blackstone plans to build new Medley warehouse
Placeholder image

Blackstone sells Weston hotel for $12M

Blackstone sells Weston hotel for $12M
Industrial sales are up

South Florida’s industrial sales jump to over $1B in Q3 2019

South Florida’s industrial sales jump to over $1B in Q3 2019
Daily Digest Miami

Missoni Baia lands massive loan, Babylon Brickell owner sells Overtown property: Daily digest

Missoni Baia lands massive loan, Babylon Brickell owner sells Overtown property: Daily digest
arrow_forward_ios

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

Loading...