UPDATE 1-Blackstone may buy Morgan Stanley’s Japan loans- Nikkei

July 22 (BestGrowthStock) – Private equity firm Blackstone Group LP
(BX.N: ) is close to finalizing a deal to purchase real estate
loans with a face value of around 100 billion yen ($1.14
billion) owned by Morgan Stanley’s (MS.N: ) Japanese operations,
the Nikkei business daily reported.

This would mark Blackstone’s first investment in Japan and
could help breathe life into the domestic real estate market,
which has slowed since the global financial crisis, the paper
said.

The proposed deal involves nonrecourse loans, which were
backed by domestic commercial real estate such as office
buildings, Morgan Stanley had extended with future
securitizations in mind, the Nikkei said.

The collateral is believed to comprise around 30 properties
in the greater Tokyo area, the paper reported.

Blackstone, however, is likely to pay considerably less
than the 100 billion yen face value of the loans being
discussed, and is expected to target a future profit from the
deal by unloading the loans to a third party or selling the
collateral, the business daily reported.

Blackstone is also believed to be negotiating with Bank of
America (BAC.N: ) to handle about $2 billion of its real estate
fund investments focussing on the Asian market, the Nikkei
said.

Blackstone appears to be ramping up its investment in
Japan on the belief that real estate prices are close to
finding a bottom, the paper said.

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($1=87.42 Yen)
(Reporting by NR Sethuraman in Bangalore; Editing by Roshni
Menon)

UPDATE 1-Blackstone may buy Morgan Stanley’s Japan loans- Nikkei