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The Blackstone Group L.P. (BX)

  • Dec. 8, 2014, 7:44 AM
    • The 26 office buildings were part of the Equity Office Properties Trust which Blackstone (NYSE:BX) acquired for $39B in 2007. They are being sold to Hudson Pacific Properties (NYSE:HPP) for $3.5B, with Hudson is paying just $1.75B, and making Blackstone a 48% owner of the company.
    • HPP -0.7% premarket
  • Dec. 4, 2014, 10:19 AM
    • In private-equity, Blackstone (BX +1.4%) and KKR & Co. (KKR +0.9%) post gains after being initiated with Overweight ratings, while Carlyle Group (CG -1%) and Oaktree Capital (OAK -0.5%) are started at Equal Weight.
    • Moving onto traditional asset managers, Invesco (IVZ -0.5%) is rated Overweight, while T. Rowe Price (TROW -0.3%), Legg Mason (LM -1.5%), Franklin Resources (BEN -0.9%), and BlackRock (BLK -0.2%) are all started at Equal Weight.
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  • Dec. 1, 2014, 5:59 PM
    • Blackstone (NYSE:BX) has reached a binding deal to sell its IndCorp Properties portfolio of U.S. industrial property to a venture including GIC and Global Logistic Properties for $8.1B, WSJ reports.
    • BX had been considering selling the company via an IPO, but apparently decided instead to sell into the hot commercial real estate market, which is seeing both domestic and foreign investors pay up for property.
    • The sale would be one of the largest-ever sales of industrial property.
  • Dec. 1, 2014, 1:06 PM
  • Nov. 21, 2014, 6:49 AM
  • Nov. 20, 2014, 4:08 PM
    • The business owns and operates more than 200 residential properties consisting of more than 10K units. Blackstone (NYSE:BX) is paying just north of ¥190B (about $1.6B).
    • GE Capital Real Estate has global assets of $36B, and the Asia-Pacific unit has $5.1B.
    • Francois Trausch, CEO – Asia-Pacific at GE Capital Real Estate: “This transaction supports our global strategy to reduce our equity book as we continue to build our global debt operations."
    • Source: Press release
  • Nov. 19, 2014, 7:47 AM
    • Frustrating Blackstone (NYSE:BX) owners is the low relative valuation it gets, at least in part because of its lack of permanent capital, and this new investment vehicle addresses that by having a longer time horizon than the 10 years for a typical P-E fund.
    • This "core" fund would invest in slower-growing, but safer companies, use less debt in buyouts, and charge lower fees than most P-E funds. Blackstone reportedly is seeking up to $2B each from five or six of its largest public pension fund and sovereign wealth fund investors.
    • Another benefit: Blackstone wouldn't be forced to unload successful companies so soon just because the fund is running out of time. The downside: How to sell investors on the idea of lower annualized returns (though lower fees will help).
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  • Nov. 19, 2014, 1:51 AM
    • Australia’s Orica (OTCPK:OCLDY) has agreed to sell its chemical business to Blackstone (NYSE:BX) for A$750M ($653M).
    • The deal will allow Orica to concentrate on producing explosives for the mining industry, which accounts for the vast majority of its profits.
    • Orica booked a 1.7% rise in net profit for the year through September to A$602.5M.
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  • Nov. 18, 2014, 7:08 AM
    • The deal for the 1.2M square-foot tower at 1095 Avenue of the Americas, if closed, would be the 2nd-most expensive sale of an individual office building in U.S. history (the GM building sold for $2.8B in 2008).
    • The buyer is Ivanhoe Partners, the real estate arm of the Quebec pension fund.
    • For Blackstone (NYSE:BX) the deal is the latest in a series of moves to take advantage of the recent run-up in prices by selling office towers it picked up near the top of the last U.S. property bubble.
  • Nov. 4, 2014, 3:00 AM
    • Singapore’s Government Investment Corp is leading a consortium to purchase Blackstone's (NYSE:BX) IndCor for about $8B including debt.
    • IndCor was formed in 2010 as a portfolio company of Blackstone and has a footprint of warehouses and distribution centers across the U.S.
    • IndCor announced in September that it had filed with the SEC for an IPO.
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  • Oct. 29, 2014, 10:05 AM
    • At issue, reports Reuters, are how net returns - also known as net IRR - are reported in private equity firms' marketing materials. Typically, net IRR deducts investors' fees and expenses, but P-E fees are not standard, and different investors pay different amounts.
    • By including the general partner's money in the calculation - they don't pay any fees - the performance figures would be inflated, and the SEC is investigating whether this is being properly disclosed.
    • The SEC has already been looking under the hood of the P-E industry - mostly regarding fees - but the emphasis into these performance figures signals a new phase in the probe.
    • A Reuters review finds Blackstone (BX +0.2%), Carlyle Group (CG -0.3%) - for example - do not include money coming from general partners in their IRR calculations, but Apollo Global (APO +0.1%) does.
    • ETFs: PSP, PEX
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  • Oct. 28, 2014, 1:49 AM
    • Blackstone (NYSE:BX) is looking to raise around $13B for its next flagship global real estate fund, in line with its predecessor fund, Blackstone Real Estate Partners VII, which raised $13.4B in 2012.
    • The P-E firm has already started preliminary conversations with potential investors about the new fund and expects marketing documents to be ready in the next few weeks.
    • Blackstone derived 45% of its earnings from real estate in the first nine months of 2014.
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  • Oct. 21, 2014, 9:22 AM
    • The former management team of Solops, LLC partners with Blackstone (NYSE:BX) to create Onyx Renewable Partners, which will be owned by funds managed by Blackstone.
    • Onyx's primary focus will be to develop, finance, construct, and operate utility-scale wind and solar projects in North America.
    • Leading the management team is Solops founder and CEO Matthew Rosenblum, and over the past three years his crew collectively managed the development of more than 100MW of new renewable projects.
    • Source: Press Release
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  • Oct. 20, 2014, 7:46 AM
    • The sale of 71 properties totaling about 11.3M square feet over 25 states to DDR and Blackstone (NYSE:BX) will results in net proceeds of roughly $1.34B to ARCP that will be used to pay down the company credit line.
    • The company also announces a LOI with another party to sell five multi-tenant properties for $52.8M, and it's expected to close before year-end.
    • Source: Press Release
    • Previously: American Realty inks agreement to sell shopping centers
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  • Oct. 19, 2014, 10:08 AM
    • Remember last summer's private-equity legal settlements which ensnared sector names like Carlyle Group (NASDAQ:CG), Blackstone (NYSE:BX), KKR, and the P-E arm of Goldman Sachs (NYSE:GS) for colluding to keep a lid on the prices of buyout targets? Needless to say, management didn't bear the burden of the settlement penalties, but neither did the shareholders. In the case of Carlyle at least, the $115M fine was shouldered by the investors in one of its buyout funds.
    • Those investors include state and city workers and retirees from across the country, and chances are they were unaware they were responsible for these costs due to the highly secretive nature of the agreements made between P-E and the pension funds which invest in them.
    • Disclosure "would cause substantial competitive harm," says a Carlyle spokesman. “This is an overreach on Carlyle’s part, and frankly it violates the spirit of the indemnification clause of our contract,” says NYC Comptroller Scott Stringer, who oversees three city pension funds invested in that particular Carlyle vehicle.
    • Private-equity firms now manage $3.5T in assets, and pension funds have been among the more willing investors, with 10% of their assets - or $260B - in P-E. Yet the terms of their deals - including what they're paying to take part - are hidden from view despite open-records laws demanding just the opposite.
    • “Hundreds of billions of public pension dollars have essentially been moved into secrecy accounts,” says former SEC lawyer Edward Siedle. "It’s very damning legal boilerplate that sums up the fact that they are the highest-risk, highest-fee products ever devised by Wall Street.”
    • ETFs: PSP, PEX
  • Oct. 16, 2014, 9:47 AM
    • A previous spinoff didn't do too badly, says Blackstone (BX -4.8%) President Tony James, speaking on the company earnings call about the planned spinoff of the P-E firm's advisory business. The "previous spinoff?" BlackRock.
    • Paul Taubman - who will head the advisory operation post-spin - is a "rock star investment banker," says James.
    • Webcast and presentation
    • Previously: Blackstone misses by $0.06, beats on revenue
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Company Description
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.
Sector: Financial
Country: United States