Blackstone Group LP, the world's largest private equity firm, is paying $9.4 billion to purchase 588 U.S. shopping centers and strip malls owned by Australia's Centro Property Group.
According to combined media reports, Centro purchased the retail properties in 2007 from New Plan Excel Realty Trust for approximately $6.2 billion. Blackstone outbid Starwood Capital Group and NRDC for the acquisition, which is the firm's largest in four years.
Sources close to Centro say the company is currently holding $8 billion in debt from its U.S. shopping centers, and that it would use the funds from the agreement to pay down debt on its commercial retail portfolio in Australia and New Zealand.
SOURCE: Bloomberg, Financial Times, Reuters
