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Blackstone Defaults on $562M Bond on European Office Buildings
Commercial Observer ^ | 3/2/23 | Mark Hallum

Posted on 03/03/2023 3:17:30 AM PST by EBH

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1 posted on 03/03/2023 3:17:30 AM PST by EBH
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To: EBH

Sounds like money-laundering to me.
They should be able to pretty much pay cash down for any building they think they make money on.


2 posted on 03/03/2023 3:31:59 AM PST by Jonty30 (THE URGE TO SAVE THE WORLD IS ALMOST ALWAYS AN URGE TO RULE IT)
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To: Jonty30

The swamp is is really really wide.


3 posted on 03/03/2023 3:34:21 AM PST by AndyJackson (.)
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To: AndyJackson; Jonty30

Meh. Office buildings are struggling post-Covid. Lots of companies have greatly expanded their work from home programs and left them in place, and need much less office space as a result. This affect large commercial office leases significantly.

Here’s a US story on the same theme.

PIMCO’s Columbia Property Trust defaults on $1.7B of office loans
Mortgage tied to seven-building portfolio spanning NY, SF
https://therealdeal.com/national/2023/02/22/pimcos-columbia-property-trust-defaults-on-1-7b-of-office-loans/

There will be more.


4 posted on 03/03/2023 3:42:26 AM PST by FreedomPoster (Islam delenda est)
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To: EBH

Isn’t Blackstone one of the key pushers of the Diversity, Equity, Inclusion killer of Western culture and Chistendom?


5 posted on 03/03/2023 3:51:19 AM PST by marktwain
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To: FreedomPoster

Exactly. Once sold as 100% safe investments these REITs and related bonds are each becoming a potential financial land mine. The workout guys will do well but the holders could be facing a haircut IMO.


6 posted on 03/03/2023 3:58:13 AM PST by Mouton (The enemy of the people is the media )
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To: marktwain

You may be thinking of BlackRock.

Though Blackstone is just as invested in Deep State’s agenda.


7 posted on 03/03/2023 4:00:36 AM PST by mewzilla (We will never restore the republic if we don't first secure the ballot box.)
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To: AndyJackson
The swamp is is really really wide.

You got that right.

8 posted on 03/03/2023 4:11:50 AM PST by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Mouton
Once sold as 100% safe investments these REITs and related bonds are each becoming a potential financial land mine.

Yes, I remember hearing the ads... and thinking about potential problems.

9 posted on 03/03/2023 4:22:46 AM PST by marktwain
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To: EBH

Blame the War! Ha Ha. You guys trained people under Covid to work remotely, hard to get them back in the office now. Also high tech and bad economic issues, supply chain issues have caused layoffs. Governments have stop giving out Covid Money. Yep office buildings are going to be a disaster. 30% vacancies in NYC.


10 posted on 03/03/2023 4:24:03 AM PST by Lockbox (politicians, they all seemed like game show hosts to me.... Sting)
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To: EBH

I wonder if Blackstone is the new Lehman? How many pension funds hold Blackstone REIT’s?

Don’t forget this in December:

Blackstone’s $69 bln REIT curbs redemptions in blow to property empire

https://www.reuters.com/business/finance/blackstone-limits-redemptions-69-billion-reit-2022-12-01/


11 posted on 03/03/2023 4:42:42 AM PST by vg0va3
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To: Lockbox

I think the only way out for commercial landlords would be to convert the space to loft condos.


12 posted on 03/03/2023 4:50:14 AM PST by SauronOfMordor (The rot of all principle begins with a single compromise.)
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To: marktwain

No, that’s Blackrock


13 posted on 03/03/2023 4:51:35 AM PST by rb22982
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To: vg0va3
No, Blackstone isn't the new Lehman for a lot of reasons. 1) It's not a bank and isn't levered 50 to 1 like Lehman was 2) most of its projects are owned individually (ie if something goes kaput it only effects that particular investment 3) Most of its assets are doing very well.

The REIT redemptions was largely issues with Asian $ coming out to cover problems back home.

14 posted on 03/03/2023 4:53:41 AM PST by rb22982
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To: vg0va3

I was thinking the same - prohibiting REIT withdrawals and now major defaults.

Not a good sign.. for them. Great for America though - especially if they start hanging themselves.


15 posted on 03/03/2023 5:01:22 AM PST by AAABEST ( NY/DC/LA media/political/military industrial complex DELENDA EST)
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To: marktwain

Yes it is
Got a real bad reputation if anyone looks into it carefully.

It’s a major advertiser on Fox News, touts itself as a great company to invest in.

One of the major hosts should expose them...but would prolly get fired!


16 posted on 03/03/2023 5:12:01 AM PST by Syncro (Facts and Truth.)
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To: EBH

“rising interest rates”

They buried the lead!

When you have to refinance dirt cheap debt with expensive debt many businesses become raging dumpster fires.

All the rest is noise.


17 posted on 03/03/2023 5:14:53 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: mewzilla

Oops, I did that too
A few minutes ago.

Yes, Blackrock bad.

Blackstone, I never heard if.

Sounds shaky too...


18 posted on 03/03/2023 5:16:36 AM PST by Syncro (Facts and Truth.)
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To: Mouton

“Once sold as 100% safe investments these REITs”

Yup—that is one of many reasons I never trusted “financial advisers” in the modern era.

They flatly refused to acknowledge the possibility that the era of easy money (low interest rates) could end and the impact it would have on sectors like commercial real estate.

It is their customers who will be punished.


19 posted on 03/03/2023 5:17:32 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: Syncro

I think Blackrock was a spinoff from Blackstone. Similar to JPMorgan and Morgan Stanley.


20 posted on 03/03/2023 5:29:26 AM PST by teevolt
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