Private equity giant Blackstone Group says it is turning its attention to distressed Chinese real estate, and its founder says he is pleased with the firm's Australian investments, according to The Australian Financial Review.
Stephen Schwarzman said Blackstone, which was the first foreign firm to establish a buyout fund in China, has shifted its view of China's real estate market, having previously deemed the sector overpriced.
“We just bought a large office building in Shanghai as the developer could not hold it,” Mr Schwarzman said, according to the AFR.
“I think there will be lots more of these opportunities. We bought it at a significant discount as the developer ran into trouble.”
Mr Schwarzman also said the outlook is bright for the firm's Australian investments, which include the Valad Property Group and shopping centre group Centro, which has since been renamed Federation Centres.
“It's a good place to do business and its future growth should be pretty strong,” he told the AFR.
“Australia has an educated population and a strong resources base which should ensure its long-term prospects are solid.”