Peter Benson
Blackstone's president and chief operating officer considers real estate debt to be ‘an area of growth' for the firm.
The industry veteran is joining the New York-based credit shop as it closes its first institutional private fund.
The firm's global co-head of real estate says having $30bn of equity to deploy, at a time when debt is harder to get, is a ‘valuable asset.’
SVB and Signature, along with troubled bank First Republic, had been major sources of financing for many real estate managers.
Patrizia senior portfolio manager Falvio Casero says the tool is a primary reason for the firm’s ability to close deals this year.
The Dallas-based manager is pivoting some of its equity vehicles to also include debt investments amid rising investor demand.
The New York-based mega-manager’s latest record-breaking opportunistic real estate fund will be nearly $10bn larger in size than its predecessor.
A surprise Federal Reserve rate hike and subsequent rhetoric from the country’s central bank threatens to slow down a red-hot market.
An increase in exit cap rates and cost of debt – as well as operating costs rising faster than rental rates – were among potential inflation-driven challenges cited by managers.
The real estate investment arm of Prudential attracted first-time limited partners to the fund partly on strong past performance.