Yesterday, 9:36 AM
- The office buildings - all in Westwood, close to UCLA - total 1.7M square feet, and Blackstone (NYSE:BX) is talks to sell them to a group led by Douglas Emmett (NYSE:DEI), reports Bloomberg.
- The properties are among those remaining from Blackstone's purchase of Equity Office Properties in 2007. Most will have been sold by the end of the year, all probably gone by the end of 2016.
Mon, Nov. 23, 9:38 AM
- Airbus (OTCPK:EADSY) aims to pick a buyer for its defense electronics unit by the end of 2015 as part of its plan to dispose of assets with combined revenues of around €2B, Chief Executive Tom Enders told Frankfurter Allgemeine Sonntagszeitung.
- The final offers for the defense electronics business, which could fetch a price of up to €1B, are due early next month.
- Sources told Reuters that Rheinmetall (OTCPK:RNMBY) has tied up with buyout group Blackstone (BX -1%) to bid for the unit, rivaling private equity groups Cinven, Carlyle (CG +0.5%) and (KKR +0.3%) as well as French peer Thales (OTC:THLEY).
Mon, Nov. 23, 7:53 AM
- General Electric (NYSE:GE) has agreed to sell its $5.9B portfolio of U.K. home loans to an investment consortium led by Blackstone (NYSE:BX), TPG Special Situations Partners and CarVal Investors.
- The transaction represents the sale of almost all of GE's remaining U.K. mortgage business, and marks another step to sell most of the company's finance assets.
- When completed, the deal will contribute about $0.4B of capital to the overall target of approximately $35B of dividends expected to be paid to GE shareholders (subject to regulatory approval).
Mon, Nov. 16, 8:02 AM
- Facility management group GCA Services provides janitors and cleaners to schools, airports, warehouses, power stations, rental car locations, and the like. The private equity arm of Goldman Sachs (NYSE:GS) and Thomas H. Lee will have an equal stake in a group buying GCA from Blackstone (NYSE:BX) for about $1B, reports Reuters.
- GCA gets most of its business from the education sector and could benefit as more school districts outsource facility management (currently less than 20% is outsourced).
- Blackstone acquired GCA from another P-E firm in 2012 for about $600M.
Fri, Nov. 13, 7:21 AM
- Blackstone (NYSE:BX) is purchasing Japan Residential Investment in a deal worth about $450M, reports Reuters. The company owns 59 residential properties worth ¥46B in Tokyo, as well as in the country's 2nd and 3rd-largest cities, Osaka and Nagoya.
- Blackstone last year bought residential assets from GE's property unit in a deal worth more than ¥190B.
Thu, Nov. 12, 3:06 PM
- Part of a broader plan to reduce costs and invest with fewer managers, Calpers last summer said it would sell up to $3B of its real estate portfolio. The buyer is Blackstone (NYSE:BX), which will buy the pension fund's stake in 43 funds.
- Burned badly by the property bust, Calpers for years has been restructuring its real estate holdings, and now focuses on core income investments like apartments, industrial parks, offices, and retail space. This suggests the assets sold to Blackstone consist of things like raw land, farmland, to name two.
- The BX deal “offloads assets that no longer fit with our strategic goals in real estate and also reduces the number of managers in our program,” says a Calpers spokesman.
Thu, Nov. 12, 7:24 AM
- The $820M investment from Blackstone (NYSE:BX) will take the form of convertible perpetual preferred stock, convertible into NCR common at $30 per share. The stock comes with a 5.5% dividend.
- As reported earlier, the money will be used to help fund a $1B share repurchase, which will be done at a modified Dutch Auction tender to begin tomorrow at an expected price range of $26-$29.50 per share.
- After giving effect to the investment and share repurchase (assuming fully subscribed at the midpoint of the price range), Blackstone will have about a 17% stake in the company on an as-converted basis.
- NCR will expand its board from nine to eleven, appointing two Blackstone MDs upon closing (expected by early Dec.).
- A conference call is set for 8 ET
- Source: Press Release
- NCR +4.5% to $27.98 premarket
- Previously: More on Blackstone/NCR: Over $800M for 15%+ stake (Nov. 11)
Mon, Nov. 9, 11:19 AM
- It's been a particularly tough run for private-equity, and Q3 results disappointed nearly across the board. After a roughly 30% decline in Blackstone (NYSE:BX) since Memorial Day, Citigroup has seen enough, and downgrades to Hold from Buy.
- Shares are lower by 3% today.
- Previously: Frustrated Schwarzman argues higher valuation for Blackstone (Sept. 4)
- In the meantime, Blackstone continues to do what it does, with two top execs saying India is the company's largest destination (in EM) for putting capital to work. They expect to invest as much as $3B in the country over the next five to six years.
Mon, Nov. 2, 3:14 PM
- Leading the way higher for the roughed-up sector are alternative players like Och-Ziff Capital (OZM +10.1%) and KKR (KKR +9.3%). There's also Blackstone (BX +4.3%), Fortress (FIG +3.2%), Oaktree (OAK +4.2%), and Carlyle Group (CG +7.4%).
- Traditional names like Manning and Napier (MN +11.7%), Affiliated (AMG +2.6%), Waddell & Reed (WDR +2.7%), Virtus Investment (VRTS +3.7%), and Legg Mason (LM +2.3%).
- Many of these names have reported Q3 already, and the results have mostly disappointed. On tap for tomorrow is Och-Ziff.
Wed, Oct. 28, 7:55 PM
- With IBM taking on the digital and data assets of The Weather Company, what happens to The Weather Channel that it's leaving behind?
- It's struggling, but it will pursue storm coverage as a "hyper-local streaming service," according to channel CEO Dave Shull. "We are continuing to invest in our strategic partnerships with our distributors, advertisers, and emerging technology start-ups."
- The network will continue as its own company -- still owned in part by NBCUniversal (CMCSA +0.7%) along with Bain Capital and Blackstone (BX +1.2%) -- and has a long-term deal to use the services it sold to IBM. It's also still one of the most distributed channels on pay TV; Shull says more than half of America tunes in at least once a week.
- Comcast's recent earnings filing shows its investment in the channel has been marked down to $81M after a $252M impairment charge.
- Previously: IBM confirms Weather Co. deal, touts cloud/analytics synergies; shares rise (updated) (Oct. 28 2015)
- Previously: WSJ: IBM near $2B-plus deal for The Weather Company assets (Oct. 27 2015)
Tue, Oct. 27, 8:28 PM
- IBM is nearing a deal in excess of $2B to acquire the digital and data assets of The Weather Co., owner of the Weather Channel, The Wall Street Journal is reporting.
- The company -- owned in part by NBCUniversal (NASDAQ:CMCSA) along with Bain Capital and Blackstone (NYSE:BX) -- started hiring banks to seek a buyer in August for a deal it hoped would hit $3B. The company's digital bits were widely considered to be the most valuable.
- IBM has a particular interest in the company's forecasting group, WSI, the WSJ says -- a unit that's chock full of tech and weather data that the Weather Co. licenses to various businesses.
- The deal would reportedly come with Weather Co. CEO David Kenny, who would join IBM.
- A $2B deal would be a discount over the company's 2008 sale price, valued at $3.5B. IBM shares fell 4.1% today.
- Previously: IBM eyes digital assets of The Weather Company (Oct. 19 2015)
- Previously: Weather Channel hires banks to explore sale for up to $3B (Aug. 20 2015)
Mon, Oct. 19, 6:43 PM
- The WSJ reports Blackstone (NYSE:BX) is nearing a $5.3B deal to buy Manhattan's giant Stuyvesant Town-Peter Cooper Village apartment complex. The NYT reports the price is roughly $5.4B.
- Bloomberg recently reported Blackstone was among the companies interested in "Stuy Town," which houses 30K people in 11.2K units spread out over 80 acres of land. Loan servicer CWCapital, owned by Fortress Investment Group (NYSE:FIG), has been in control of the property on behalf of bondholders.
- About 5K of Stuyvesant Town's units are rent-stabilized. New York will contribute $225M to help keep the units affordable to lower-income families for the next 20 years.
Mon, Oct. 19, 8:26 AM
- The Weather Company is in advanced talks with IBM about the sale of its digital assets, Re/code reports, stating that a number of different parties have been discussing the purchase of either parts or all of its assets.
- Those include: The product and technology division, the television business (with the Weather Channel) and a large meteorological team.
- The Weather Company is currently owned by the Blackstone Group (NYSE:BX), Bain Capital and NBC Universal (NASDAQ:CMCSA). The trio paid $3.5B for the firm in 2008.
Fri, Oct. 16, 9:46 AM
- Headline earnings (known as "economic net income") were pretty ugly for Blackstone (BX +1.6%) in Q3, but analyst Chris Kotowski has always been more concerned with cash earnings (known as "distributable earnings"), and the company came pretty close to meeting estimates on that front.
- Economic net income is volatile and non-cash, providing just a short-term view on true earnings potential, says Kotowski.
- "In absolute terms, [the stock is] very compelling at this valuation since the cash earnings outlook remains very strong."
- He upgrades to Outperform with $38 price target (about 12% above last night's close).
- Previously: Stock price declines hit Blackstone results (Oct. 15)
- Previously: Blackstone misses by $0.05, revenue in-line (Oct. 15)
Thu, Oct. 15, 3:45 PM
- “I always look for industries where there’s oligopolistic behavior and archaic technology,” says B2R Holdings (a wholly-owned subisidary of BX fund) CEO Jason Hogg. "What I settled on was the lending industry." Rebranded as Lending.com, the company hoped to make $10B in loans over the next three years.
- Hogg was previously an exec with AmEx where he helped invent the Bluebird, a reloadable prepaid card in partnership with Wal-Mart.
- Morgan Stanley says the online/small business lending market could explode from $12B last year to $122B by 2020.
- Unlike Lending Club (NYSE:LC) and Prosper, Lending.com will focus on acquiring its customers through partnerships with retailers and other service providers.
- "“Trying to market to a consumer one at a time, that’s really a very expensive and arduous process,” says Hogg, noting marketing costs have been rising faster than revenue at other online lenders.
Thu, Oct. 15, 8:09 AM
- Q3 economic net income of negative $415.9M or negative $0.35 per share vs. a positive $758M one year ago, thanks to big declines in the value of the company's public holdings.
- Distributable earnings of $692M or $0.58 per share vs. $686M and $0.54 a year ago.
- Total AUM of $333.9B up 17% Y/Y, even after returning $59.7B to investor. Fee-earning AUM of $240.9B up 12%. $6.5B of capital deployed during quarter, and $16.6B YTD.
- The carrying value of private equity funds fell 2.3% thanks to those earlier-mentioned declines in equity prices. Over the last twelve months, carrying value is 9.5% higher.
- Conference call at 11 ET
- Previously: Blackstone misses by $0.05, revenue in-line (Oct. 15)
- BX -1.6% premarket
Blackstone Group LP is an alternative asset manager. It also provides financial advisory services, including corporate and mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services.
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