Blackstone Said to Get $2.1 Billion Loan for Home Purchases
By John Gittelsohn - Mar 13, 2013 1:10 PM ET
Blackstone Group LP (BX), manager of the largest real estate private-equity fund, has expanded a credit line to buy single-family homes to $2.1 billion from $600 million, according to a person with knowledge of the deal.
Deutsche Bank AG (DBK) is leading the syndicate of banks, said the person, who asked not to be named because the loan is private. Other lenders include Bank of America Corp., Credit Suisse Group AG (CSGN), Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. (JPM)
Blackstone has invested $3.5 billion to buy 20,000 single- family rental homes since last year, making the New York-based company the largest investor of its type in the U.S.
The firm is rushing to acquire properties as housing prices recover and as demand for rentals increases among people who can’t qualify for a mortgage or don’t want to own.
Blackstone spokesman Peter Rose and Deutsche Bank spokeswoman Renee Calabro declined to comment. The firm had been trying to increase the loan to $1.2 billion.
The single-family home rental business, which has been dominated by small investors, is attracting more institutional capital. American Homes 4 Rent, a Malibu, California-based company headed by Public Storage (PSA) founder B. Wayne Hughes, has acquired about 10,000 properties. Thomas Barrack’s Colony Capital LLC has raised $2.2 billion for home purchases.
Silver Bay Realty Trust Corp. (SBY), a Minnetonka, Minnesota- based real estate investment trust, raised $263 million in an initial public offering in December. American Homes 4 Rent issued a statement last month saying it plans to file for an IPO within 60 days.
more:
http://www.bloomberg.com/news/2013-03-13/blackstone-said-to-get-2-1-billion-bank-loan-for-home-purchases.html
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