The property fund would not reopen until October, seven months later. I dont think its right to abandon towns and cities around the U.K. just because the retail proposition isnt working, says Hughes, head of real assets. UKs Land Securities Group Plc said on Friday that it has agreed to sell Harbour Exchange, a London office property, to Blackstone Inc for 196.5 million pounds ($262.82 million) as the commercial landlord reshuffles its portfolio. Expert insights, analysis and smart data help you cut through the noise to spot trends, The strategy is an expansion of Blackstone Real Estates perpetual core-plus business, which has $116bn of assets under management globally. the 10/12 Board Guardians of the Arches said the offer was a resultfor tenants: Many businesses would not have survived they were considering going into liquidation rather than having to carry the burden through the crisis., Since the rent moratorium ended in July, The Arch Co. has reverted to renegotiating rental contracts. Blackstone Inc has defaulted on a 531 million euro ($562.5 million) bond backed by a portfolio of offices and stores owned by Finnish company Sponda Oy, Bloomberg News reported, as rising interest rates hit European property values. On Wednesday, the BREIT said it was forced to limit withdrawals for I was in search of an online course; Perfect e Learn As at 30 June 2021, the total net assets of undertakings for collective investment, comprising UCIs subject to the 2010 Law, specialised investment funds and SICARs, amounted to EUR 5,487.526 billion compared to EUR 5,332.392 billion as at 31 May 2021, i.e. Blackstone has taken a very different approach. The whole question of the data that you need to be a successful landlord how you decide what data you need, how you collect it, how you analyze it, how you distribute it is going to be a really interesting piece, Johnston says. Why Blackstone | BEPIF | Blackstone European Property Income Entrepreneurs like Dean are happy. Theyre asking top-dollar rent for shabby conditions, he told the other traders at the August meeting. Travel restrictions then hampered Blackstones sales efforts before the war in Ukraine unleashed a fresh wave of volatility. We follow a systematic approach to the process of learning, examining and certifying. But with debt mounting, a sale was seen as preferable. This copy is for your personal, non-commercial use only. We would suggest, as would most CIO offices, by having almost all assets in a daily liquidity structure, you give up return and income, Myers said. This content is only available to registered users You must be logged in to continue Register for free to finish this article. and other data for a number of reasons, such as keeping FT Sites reliable and secure, Peter Ferrari, chief executive of AshbyCapital, said: Having purchased The Colmore Building in 2015 when it was 40% vacant, this sale marks the successful completion of our asset strategy. Blackstone has dramatically debuted in the UKs regional office market after securing an office in Birmingham for 182m as part of its European core-plus yield-oriented strategy, React News can reveal. WebFund manager Direct Property Team Annual management feeB 0.75% YieldC 5.4% Premium/(Discount) (22.5)% Gearing 35.2% Net Asset Value 532.5m AIFMD Leverage Limits abrdn European Logistics Income PLC Fund managers report continues overleaf Fund managers report - continued. We believe it has accelerated the shift toward e-commerce on the one hand, benefiting the logistics sector, but on the other, impacting certain subsectors within physical retail., In logistics, its the last mile that he finds most interesting. Lunar time zones: How do you tell the time in space. The works included improving the reception and common parts and the addition of new facilities including a coffee house, gym, treatment rooms and cycling facilities including luxury changing rooms and a drying room. The drop in prices has so far not led to widespread credit losses, so some creditors are betting that rapid sales can still ensure debt is fully repaid. Dear user, ET RealEstate privacy and cookie policy has been updated to align with the new data regulations in European Union. When it took over the portfolio, The Arch Co. introduced an affordability mechanism as part of its tenants charter, drawn up in consultation with Guardians of the Arches, with the aim of keeping a diverse mix of businesses in the arches. McWilliam initially cut his teeth in private equity and investment banking. Meanwhile, the LGIM U.K. Property Fund, which has over 2 billion in assets, offered investors a 7.96 percent return in the 12 months through June 30. The new fund will likely come with a minimum investment commitment of about 25,000 euros ($29,860), according to people with knowledge of the matter. On Londons crumbling high streets, two massive real-estate investors are banking on opposing strategies. That experience matters with a portfolio where surveyors are heading to arbitration over the issue of how much the retail space is worth per square foot and how value might be increased by raising rent, changing the size of the lease, or changing the use. BX. Birmingham has been buoyed by major government investment into the city, the expansion of corporates, and north-shoring from the likes of Goldman Sachs. USD. Blackstone, with $649 billion under management, could weather a year. The pandemic has both accelerated and disrupted certain trends, he says. But in the intervening years, alternative asset classes have emerged: build-to-rent property, storage, even prisons and schools. Photograph:(Reuters). Then theres the free rent. SC asks Authum Investments to implement resolution plan for Reliance Home Finance22 hrs ago, Uttar Pradesh CM meets aggrieved Noida homebuyers, assures 'complete solution'22 hrs ago. This debt relates to a small portion of the Sponda portfolio, a Blackstone representative said in an emailed statement. Lab leak theory: 3 years on, will we ever know where COVID came from? November 2022. It seemed like a good investment: Network Rail, swimming in 46.5 billion ($63.9 billion) in debts, had delayed 162 million in investment in the portfolio. Blackstone said the sudden influx of speedy grocery-delivery companies in this part of London is a result of demand from these companies for space, rather than the result of any company strategy. We are disappointed that the Servicer has not advanced our proposal," Blackstone said in an emailed statement on Thursday. The fund had its first close and We still have complete faith in theSponda portfolio and itsmanagement team, added the company. n/a: Street Address 1 Street Address 2; 2-4, Rue Eugene But some tenants have said that the information requested is excessive. FBI Documents Show Leonardo DiCaprio, Kim Kardashian Grilled for 1MDB Secrets, Female Execs Are Exhausted, Frustrated and Heading for the Exits, Microsoft Expands Game Pass as Regulators Fret Over Activision Deal, Russian Airlines Are Flying High Despite Sanctions, Critics of Bidens Antitrust Push Target FTCs Lina Khan, Ukrainian pilot pair in Arizona to fly military simulators - US official, Another Norfolk Southern train derails in Ohio; company says no toxins aboard, UPDATE 1-China sets economic growth target of around 5% as parliament opens, China to develop more energy and mineral reserves and boost production, China Sets Modest Growth Target as Economic Risks Persist. Hanna Ozkoch, who runs the Arches Cafe, a working-mens cafe in Bethnal Green, said The Arch Co.s plan to more than double her rent from 16,000 to 35,000 was totally impossible. We serve working-class people and just cant charge obscene prices, she told a journalist from the London Times in December. A lot of that capital expenditure had to be paused because of Covid, but as the lockdown eased, The Arch Co. was preparing to bring empty arches which make up a quarter of the portfolio back into use. Contact Information Covid-19 has accelerated the growth of e-commerce penetration, particularly in continental Europe, we believe, where e-commerce was relatively under-penetrated. He points to the success of Mileway, a logistics company owned by Blackstone that focuses on the last mile before delivery. LGIM was tight-lipped on exactly how many retail assets it owns, including shopping malls, retail parks, and U.K. high streets, which are the equivalent of U.S. main streets. It could wait out an 18 months suspension of rent increases and a moratorium on evictions that continues until March 2022. Toronto-Dominion Bank has agreed to pay $1.2 billion to settle allegations that it aided the scheme by banking Stanford Financial despite a flurry of suspicious activities. Please review and accept these changes below to continue using the website.You can see our privacy policy & our cookie policy. In March 2020, days after Prime Minister Boris Johnson ordered the U.K. into lockdown, LGIM, Janus Henderson Investors, BMO Global Asset Management, Columbia Threadneedle Investments, and Aviva Investors announced restrictions on their flagship property funds, freezing more than 10 billion worth of investments. Premium access for businesses and educational institutions. Posted on 03/02/2023. program which is essential for my career growth. The portfolio has been acquired by Elite Logistics Fund I, which is managed by Singapore-based alternative asset manager Elite Partners Capital, over a two-year period and includes twelve [] Awarding Excellence Across the Indian Real Estate .. Harbour Exchange, located in the Docklands area, comprises two redeveloped office buildings, housing datacentre and office space, and was let to Equinix (UK) Ltd with an unexpired lease term of nearly 20 years. We are disappointed that the servicer has not advanced our proposal, which reflects our best efforts and we believe would deliver the best outcome for note holders. Because in todays backdrop, where rates are so low, where a traditional 60-40 portfolio just isnt generating enough return in both appreciation of the underlying assets and also income, investors and advisers are realizing that to generate the income and return on a risk-adjusted basis, [you need alternatives], Todd Myers, senior managing director and chief operating officer of Blackstone Private Wealth Solutions, told Citywire. Get ETRealty's top stories every morning in your email inbox. cookies At Grosvenor, he made a name for himself as an expert in securing planning rights during his work on a former biscuit factory in south London. Please add some widgets by going to. The U.K. government passed the Coronavirus Act in March 2020, which enabled it to provide rent relief to small-business tenants, leaving landlords like The Arch Co. without payment for rent in March and beyond. The portfolio is about 45% vacant, having risen about 10 percentage points higher during the pandemic, according to the report. +44 (0) 20 3757 6890 -2.90 -2.90%. It was compared in scale to Blackstones 2015 purchase of Stuyvesant Town, Manhattans biggest apartment complex, and aroused similar political scrutiny. It also has more shopping centers, department stores, and insolvency regulations including company voluntary arrangements that make it easier for retailers to break leases. Blackstone Inc has defaulted on a 531 million euro ($562.5 million) bond backed by a portfolio of offices and stores owned by Finnish company Sponda Oy, IA-EUR Cap - LU2339810876. Through this (Harbour Exchange) disposal, we are recycling capital into opportunities where we can bring to bear Landsecs skills and expertise to drive growth and returns for our investors, said Marcus Geddes, managing director, Central London, at Landsec. WebFeb 2022 by Property Forum | Investment Savills, together with Eastdil Secured, has advised Macquarie Capital Principal Finance and Elite Partners Capital on the sale of a pan-European logistics portfolio, Elite Logistics Fund I to Blackstone European Property Income Fund (BEPIF) for 520 million. Date Filed. A week after she started working on a business plan for a plant shop, she heard about the opportunity to take on an empty retail unit on Kingland, with free rent and business rates for the first two years. Last week, Landsec said it had bought a 75% stake in MediaCity, the UKs biggest tech and media hub outside London, for $580 million, just two days after it announced the purchase of regeneration firm U+I for $260 million. Follow @ETRealty for the latest news, insider access to events and more. Blackstone acquired Sponda for almost 1.8 billion in 2018. The level of cross-ownership in the sector, where multiple real estate companies own stakes in one another has also exacerbated concerns. Thats something of an understatement. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. Sponda's portfolio includes office, retail, and logistics properties. Blackstone Inc. is a leading asset management giant and a prolific real estate investor. Blackstone had asked the bondholders for WebRepresents direct real estate investments and Blackstones open-ended European Core+ fund for institutional investors, as of December 31, 2022. That ban is significant: Many tenants will not be able to afford to pay back the money owed, and in many cases, The Arch Co. has said it will not allow any more rent arrears discounting. The purchase is understood to reflect a net initial yield of around 5%, a level considered relatively attractive compared to other core markets the investor operates in. WebThe Blackstone Group International Partners LLP (BGIP) is a limited liability partnership registered in England and Wales under number OC352581 and is authorised and In LGIMs shopping centers, hes transforming corridors into experiences in a bid to engage consumers as they drift between stores. More than 70 percent of investors believe that U.K. landlords and tenants will have to consider new models for leases after the pandemic, according to a survey by PwC. In this prime urban location, companies like Weezy and Zapp say the arches are ideal places for business. So I jumped ship, he says. The $71bn Blackstone Real Estate Income Trust has become a barometer of the health of the commercial property market and a driver of asset and fee growth at Compare Standard and Premium Digital here. That year, Blackstone partnered with the U.K.s largest privately owned property company, Telereal Trillium, to buy an entire portfolio of commercial real estate off British government-owned Network Rail. It came on the heels of the news that The Arch Co. was getting a new chief executive, Craig McWilliam. Leveraged Loan 100 Index (the The Blackstone European Property Income strategy will be comprised of approximately 90% direct property investment, with up to 10% held in "real estate-related debt and liquid instruments". In the US, where valuation declines have been more severe and rates have been higher for longer, owners such as Pacific Investment Management Co.s Columbia Property Trust and Brookfield Corp. have also defaulted on mortgages. Towards the aim, Perfect E learn has already carved out a niche for itself in India and GCC countries as an online class provider at reasonable cost, serving hundreds of students. And because Network Rail still owned the tracks, the British taxpayer would foot the bill to inspect and maintain the structures, while Blackstone could focus on filling empty arches and revaluing tenanted ones. Advanced search Blackstone defaults on $562 million Nordic property-backed CMBS - Bloomberg News: RE. Jon Gray, President and COO of Blackstone. You may not need the daily liquidity, which a stock and bond portfolio provides. helped me to continue my class without quitting job. The Arch Co. said it had cleared 50 percent of the backlog of outstanding rent reviews within the first 12 months, lower than its target of 80 percent because of the onset of Covid-19. It did not mention that LGIMs fund had been suspended, nor that 40 percent of retail tenants had not been paying rent. The U.K. has more square feet of store floor space than any other country in Europe. Had a great experience here. Landlords are not deaf to the whole ESG agenda. our Subscriber Agreement and by copyright law. Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. Toronto-Dominion Bank has agreed to pay $1.2 billion to settle allegations that it aided the scheme by banking Stanford Financial despite a flurry of suspicious activities.