Blackstone Group LP, the world’s largest private-equity firm, agreed to pay $1.08 billion to buy Duke Realty Corp.’s suburban office holdings in U.S cities including Chicago, Dallas and Atlanta and the blackstone Real Estate Partners VII will buy the 82 buildings with a combined 10.1 million square feet (938,000 square meters) of space, Indianapolis-based Duke Realty said in a statement and they include “substantially” all of Duke’s wholly owned suburban office properties in the Midwest and South.
Blackstone has invested more than $7 billion in real estate this year and has raised $4 billion for its latest property fund in the New York-based firm expects to exceed $10 billion, Chairman Stephen Schwarzman said yesterday and the managers such as Fortress Investment Group LLC, Colony Capital LLC and Starwood Capital Group LLC also are pitching new property funds and the blackstone has a lot of capital to deploy to need to it in large chunks, Ben Thypin, director of market analysis for New York-based Real Capital Analytics Inc, said in a telephone interview.
In April, Blackstone said a fourfold increase in profit from its real estate funds helped the company post its best quarterly results since going public in 2007 and the September, the company agreed to buy 36 U.S. shopping centers from Equity One Inc $473.1 million it also paid $9 billion for the U.S malls of Melbourne-based Centro Properties Group in June in its largest transaction since the leveraged buyout boom collapsed in 2007.
Duke Realty’s Chief Executive Officer Denny Oklak said the sale is a continuation of our strategic plan to reduce our investment in suburban office properties and the money generated from the transaction will be used for the acquisition and development of industrial and medical properties, and to reduce debt, he said in the statement for the purchase price includes $30 million of assumed debt, according to Duke’s statement and the duke Realty rose 3.5 percent to $11.05 as of 1:10 p.m in New York and the shares have lost 11 percent this year compared with a 2.3 percent drop in the Bloomberg REIT index.
Blackstone has invested more than $7 billion in real estate this year and has raised $4 billion for its latest property fund in the New York-based firm expects to exceed $10 billion, Chairman Stephen Schwarzman said yesterday and the managers such as Fortress Investment Group LLC, Colony Capital LLC and Starwood Capital Group LLC also are pitching new property funds and the blackstone has a lot of capital to deploy to need to it in large chunks, Ben Thypin, director of market analysis for New York-based Real Capital Analytics Inc, said in a telephone interview.
In April, Blackstone said a fourfold increase in profit from its real estate funds helped the company post its best quarterly results since going public in 2007 and the September, the company agreed to buy 36 U.S. shopping centers from Equity One Inc $473.1 million it also paid $9 billion for the U.S malls of Melbourne-based Centro Properties Group in June in its largest transaction since the leveraged buyout boom collapsed in 2007.
Duke Realty’s Chief Executive Officer Denny Oklak said the sale is a continuation of our strategic plan to reduce our investment in suburban office properties and the money generated from the transaction will be used for the acquisition and development of industrial and medical properties, and to reduce debt, he said in the statement for the purchase price includes $30 million of assumed debt, according to Duke’s statement and the duke Realty rose 3.5 percent to $11.05 as of 1:10 p.m in New York and the shares have lost 11 percent this year compared with a 2.3 percent drop in the Bloomberg REIT index.
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