CAN THERE BE any doubts about the massive investor demand for US commercial property? Certainly not if one considers the activities of private equity firms, which are so desperate to get their hands on real estate assets that they are buying up real estate investment trusts like there’s no tomorrow.
This February, Blackstone Group announced that it was buying a large US hotel Reit, Meristar Hospitality Corporation, for $2.6 billion, Less than two weeks later, Blackstone said it was also acquiring office Reit CarrAmerica Realty Corp for $5.6 billion including debt and preferred stock. When completed, this will be the largest purchase of a Reit by a private fund for more than two years. It’s not stopping there. Jonathan Gray, senior managing director at Blackstone, says the firm is going to use the CarrAmerica purchase as a valuable platform for future investments in the office sector. ...
