Blackstone defaults on $562.5 million bond
Business
$71 billion unlisted BREIT backed by portfolio of offices and stores has been in hot water
(Reuters) - Blackstone has defaulted on $562.5 million, or 531 million euro, bond backed by a portfolio of offices and stores, owned by Finnish company Sponda Oy, as rising interest rates hit European property values, Bloomberg has reported.
An extension has been sought from the bondholders for repayment of the debt by the asset management giant and prolific real estate investor, the report added. On the other side, the private company’s shares fell from 1.6 percent.
Blackstone said in an emailed statement, “This debt relates to a small portion of the Sponda portfolio. We are disappointed that the Servicer has not advanced our proposal.” It added, “We continue to have full confidence in the core Sponda portfolio and its management team.”
The $71 billion unlisted Blackstone Real Estate Income Trust (BREIT) has been in hot water. It said on Wednesday that it was forced to limit withdrawals for the fourth straight month.
