Blackstone adds European real estate in C$6.2b deal

[TORONTO] Blackstone Group Inc added new properties in Germany and The Netherlands with the purchase of a Canadian real estate trust, in deal valued at C$6.2 billion (S$6.46 billion) including debt.

The New York-based private equity firm agreed to pay C$16.79 a share in cash for Dream Global Real Estate Investment Trust, according to a statement from the companies Sunday. The offer is 19% higher than Dream Global's closing price Friday in Toronto.

Dream Global, which went public in 2011, operates office and industrial properties across Western Europe. The offer values the equity of the company at about C$3.2 billion.

"This transaction is an exciting opportunity for Blackstone to expand its existing office and logistics portfolios in some of the largest and most important markets in the region," said James Seppala, head of Backstone's real estate in Europe.

The deal comes less than a week after Blackstone separately said it raised US$20.5 billion for its largest real estate fund ever. The private equity industry's largest real estate investor held a final close on Blackstone Real Estate Partners IX. The amount gathered is more than the US$15.8 billion raised by the 2015 pool.

Toronto-Dominion Bank and National Bank of Canada were the financial advisers on the deal, which requires two-thirds support of Toronto-based Dream Global's shareholders.

BLOOMBERG