Despite reports of a market slowdown, Blackstone Group plans to launch the largest real estate fund dedicated to China and Asian markets.
According to the Wall Street Journal, Blackstone, one of the world's largest real estate investors, aims to raise $4 billion dedicated just to Asia. Blackstone sees investing opportunities in a market where many investors are cautious. used cars
According to Timothy Walsh, director of New Jersey's state pension fund council, "there's not a whole lot of competition out there...just a few niche guys." His firm made a $500 million investment in the new Blackstone Asia fund.
Although Asian economies are among the world's fastest expanding, recent economic data has been less optimistic for investors. In the first quarter, China's gross domestic product growth dropped to 7.7% year on year, a significant decline from the boom years.
According to the Wall Street Journal, several investors have been unsuccessful in the region in recent years, including a J.P. Morgan fund, which lost a high-end skyscraper to foreclosure in the Chinese city of Dalian. Bank of America, Citigroup, and American International Group are among the companies pulling back or abandoning their investment funds in the region.
However, as returns in other parts of the world decrease, many investors are rethinking Asia due to the promise of high yields. According to the Wall Street Journal, economists expect Blackstone to meet its fundraising targets.
According to the Wall Street Journal, Blackstone has spent nearly $1.5 billion in Asian real estate since 2010, as the region has recovered from the global economic downturn. According to the article, Blackstone bought the Huamin Imperial Building, a $287 million grade-A office and hotel complex, from a local troubled developer in 2012.
At this time, Blackstone is silent. "It's a really important effort for us to become the most active, opportunistic real-estate investor in Asia," chairman Stephen Schwarzman said in a January conference call.
The Chinese government recently proposed new controls for property investors in an effort to derail surging housing prices, which Blackstone will aim to take advantage of.