Blackstone, the US investment bank, is raising money for its third property fund, and could have up to $2bn to spend on both sides of the Atlantic.
The fund, Blackstone Real Estate Partners III, is likely to channel around half the money raised into property outside the US, according to Marc Gilbard, managing director of Moorfield Estates, Blackstone’s UK partner. Gilbard said that he is looking at “a number of opportunities” for Blackstone’s money.
Blackstone is keeping a close eye on retailer Sel-fridges, currently the subject of bid speculation. John Ritblat’s British Land has built a 6% stake in the company which owns the flagship Oxford Street department store since it was demerged from Sears in July.
Blackstone was rebuffed when it approached Sears with an offer before the demerger, but Gilbard said that it has not lost interest altogether. He said: “We’ve made our presence felt. We wouldn’t want to go hostile, but we would be there to be viewed as a white knight if Selfridges didn’t wish to have John Ritblat or anyone else as a bedfellow.”
Gilbard’s comments came as Moorfield announced a 20% increase in interim pretax profit to £1.1m. Profits were lifted by Moorfield’s first joint venture with Blackstone, the Moorstone Trading Part-nership, set up 18 months ago. Moorfield received a £553,000 performance-related fee from Moorstone after all its properties were sold.
The company also saw a first-time contribution from its residential joint venture with Welbeck Homes.
Gilbard said that he expects planning decisions soon on Moorfield’s two proposed schemes – the Xanadu complex in Lancashire and a site at Teesside Airport.
