These debt handlers are front-and-center of the real estate distress unfolding during the covid-19 crisis.
The $2.8bn sale to Highgate is potentially the first many large hospitality portfolio sales, but a debt transfer of its size is unlikely to be repeated.
Vacancy and rental levels could be on a longer-than-anticipated road to recovery, especially in western markets.
Though new relationships are still on hold throughout much of the world, many kinds of investors are still finding ways to grow their real estate exposure.
Investors committed around $5bn of capital to Blackstone Real Estate Debt Strategies IV after the end of Q1 2020.
As retail and office sectors trend toward volatility, the steady returns of sale-and-leaseback strategies are becoming attractive fixed-income substitutes.
Leniency from banks has given private real estate lenders flexibility to pass down, but leveraged investments remain a ticking timebomb.
Securitised real estate debt has been battered by the covid-19 pandemic. Now institutional managers must decide what to do about it.
The firm had over $20bn of inflows in Q2 2020, which includes significant capital raised for the Blackstone Real Estate Debt Strategies IV.
The follow up to KKR’s 2017 fund will continue to focus on junior tranches of commercial mortgages.