June 2, 2023

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Blackstone defaults on $562 million on Northern property-backed CMBS – Bloomberg News

March 2 (Reuters) – Blackstone Inc (BX.N) has defaulted on a 531 million euro ($562.5 million) bond backed by a portfolio of offices and stores owned by Finnish firm Sponda Oy and Bloomberg News. mentionedas higher interest rates affected European real estate values.

The asset management giant and prolific real estate investor sought an extension from bondholders to pay down the debt, but voted against it, the report said Thursday, citing people familiar with the matter.

Shares of the private equity firm fell 1.6 percent.

“This debt relates to a small portion of the Sponda portfolio. We are disappointed that Servicer did not submit our proposal,” Blackstone said in an emailed statement Thursday.

“We continue to have full confidence in Sponda’s core portfolio and its management team,” the company added.

Blackstone’s $71 billion unlisted real estate income fund (BREIT) has also been in hot water. On Wednesday, BREIT said it had to limit withdrawals for the fourth month in a row.

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($1 = 0.9440 euros)

Additional reporting by Javier Shekhawat and Mehnaz Yasmin in Bengaluru. Editing by Anil D’Silva and Chingini Ganguly

Our standards: Thomson Reuters Trust Principles.

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