Blackstone Group, an American private equity firm, has been preparing itself to sell its shopping mall portfolio in Australia for $2.65 billion which may be the country’s largest real estate transaction ever. UBS Group and JPMorgan are appointed to float the sale along with Jones Lang LaSalle (JLL), an American real estate advisory firm, as per the report by Reuters.
The entire portfolio includes 10 shopping centres situated mainly in Sidney and Melbourne where the land values have been growing to the top and spending on retails sector enhanced with increased population. The details of this sale were circulated at the end of March.
In January, Blackstone Group raised around $5 billion to shift its investment focus on Asian properties such as warehouses and malls in the countries China, India and Australia. The company has made an investment in Japanese residential real estate, office space in Australia and Chinese shopping malls. The recent filings Blackstone shows that these Asia-focused funds have an internal rate of return of 17 per cent through September 2016 which definitely encouraged the company put more fund into these markets.