FINANCE Blackstone and Wells Fargo are to buy most of GE Capital Real Estate’s assets in a $23bn (£15.7bn) deal.
Blackstone’s BREP Europe IV fund will purchase $1.9bn of European equity real estate assets, consisting of office, logistics and retail assets predominantly in the UK, France and Spain.
The shed assets will be integrated into Logicor, Blackstone’s European sheds platform, with the retail assets incorporated into the Multi european retail platform.
Wells Fargo will purchase performing first mortgage real estate loans worth $9bn in the US, Canada and the UK.
Blackstone’s BREP VIII fund will purchase the US equity assets for $3.3bn, including offices in southern California, Seattle and Chicago.
Blackstone’s real estate debt fund BREDS will purchase performing first mortgage loans in Mexico and Australia for $4.2bn.
Blackstone’s publicly traded commercial mortgage REIT will buy a $4.6bn portfolio of first mortgage loans, mostly in the US, with Wells Fargo providing financing.
The $4.6bn portfolio includes 82 first mortgage loans secured by properties in the United States (68%), Canada (15%), the United Kingdom (10%), and Germany (7%) with an estimated weighted average loan-to-value ratio in line with Blackstone Mortgage Trust’s existing portfolio.
Eastdil Secured and Wells Fargo Securities acted as advisor to Blackstone and Wells Fargo.
Kimberlite Group and Merrill Lynch acted for GE Capital.
