Bonds

Blackstone Increases Bond Sale to Help Pay for REIT Acquisition

  • Upsize suggests investor demand is there for at least some CRE
  • Comes a month after Blackstone pulled another CMBS from market
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Blackstone Inc. is increasing the size of a commercial mortgage bond offering that will help pay for part of its $10 billion acquisition of apartment landlord AIR Communities.

Originally floated as $2 billion, the asset manager told investors the offering is being increased to $2.95 billion and is now slated to be finalized early next week, according to people familiar with the matter. The increase is seen as a sign of strong investor demand for at least some properties within the beleaguered US commercial real estate sector.