Blackstone Prepares $1B CLO Sale Amid Asset Class Shift
Blackstone is seeking a $1 billion sale of a collateralized loan obligation that's backed by about 90 assets, according to a report from Bloomberg.
While the news outlet noted that the details could still change, more than 85 percent of the dollar volume of the assets involved breaks down into three asset classes: industrial, hospitality and apartments.
At this time, no possible borrowers were listed. Assuming the deal goes through, the CLO sale would mark Blackstone Mortgage Trust's (BXMT) first in this category since 2021. During its history, the REIT has mostly provided loans to the office sector. However, Bloomberg said executives have now pivoted to other spaces such as logistics and multifamily, as remote work has picked up since the pandemic.
The move by BXMT comes as its parent has been busy with other transactions in the billions. Most recently, the New York-based firm raised $8 billion for its real estate debt Real Estate Debt Strategies V fund, which it plans to invest in multiple strategies across the globe. Another big deal from Blackstone includes snatching a $2.78 billion CMBS loan to help finance its $4 billion retail acquisition. Moreover, the asset manager recently bought a marina real estate portfolio for $5.65 billion.
Source: GlobeSt/ALM