'London is the number one city for attracting overseas investors and is where we’ve been fairly active', Ken Caplan, Senior Managing Director in charge of European real estate, said in an interview. 'A big focus of ours has been to target high-quality properties that have some type of fixable problem, that once fixed are perfect for institutional investors'.
Bloomberg reports that Blackstone can afford to be selective in London as banks avoid lending for developments unless a tenant is committed to lease space or a buyer is lined up for the completed property. The firm picked projects in growing markets like student housing as well as partially built properties that needed funding for completion.
The world’s biggest buyout firm is seeking as much as $1.28bn pounds for Chiswick Park, a west London office development it bought in April 2011 for $770m. In June, the company sold three central London student dormitories to a fund managed by Round Hill Capital LLC for about $665m. The firm more than doubled its money on the deal, according to a person with knowledge of the matter who asked not to be identified because the information is private. Caplan declined to comment on the sales.
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