Sentosa deal: Blackstone ready for 5-year wait

Singapore

BLACKSTONE Group, which is taking part in the refinancing of luxury Singapore properties, is prepared to wait as long as five years for a turnaround in residential prices to see higher returns on the transaction.

Blackstone and Malaysia's CIMB Bank agreed this week to take part in a financing for a luxury hotel, retail and residential development, owned by City Developments, Singapore's second- largest developer, on Sentosa.

In exchange for S$469 million in funding, the New York-based private-equity company and CIMB will receive a fixed 5 per cent coupon for five years and other cash flows from the Sentosa project. They also have rights to any pr…