Blackstone locks eyes on property market with $5.1bn AIG housing assets deal
Private equity firm Blackstone is set to splash $5.1bn on housing assets from the American International Group (AIG), as it locks eyes on the affordable property market.
AIG is also set to sell a 9.9 per cent stake in its life and retirement business to Blackstone for a further $2.2bn.
Blackstone agreed to a “long-term strategic asset management relationship” for an initial $50bn from AIG’s life and retirement portfolio.
The deal forms part of Blackstone’s initiative to pursue lower-cost rentals for its real estate business, which has traditionally reeled in attractive returns for businesses.
It comes as the private equity group sweetened its offer for property developer St Modwen at the end of June – which brought its total takeover offer to £1.25bn.
Blackstone, which owns Center Parks, initially made a £1.2bn bid for NYSE-listed St Modwen in May.