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Private-Equity Firm Blackstone, Spain’s Largest Landlord, Tries to Unload its Properties


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“highly competitive and that now is a good time to buy a home.”

Well that's just great, let me get the check book out.

There was a website bit like Zoopla, but it contained all the repos from banks and other lenders.  Occasionally you'd get some half decent stuff, but there were tonnes of unattractive apartments  from as little as 10 or 15K€. Terraced town houses to be got from 50K. I doubt it's any more expensive now.

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More about Blackstones ... Debt sales in the Uk 

 

Debt Sale Gives A Glimpse Into Blackstone’s Big UK Housing Play

https://www.bisnow.com/london/news/build-to-rent/debt-sale-gives-a-glimpse-into-blackstones-big-uk-housing-play-106237

A new sale of commercial real estate debt securities has provided a rare insight into Blackstone’s UK social housing investment
strategy, which is on course to become a £1B-plus business. 

Blackstone-backed Sage Housing is selling £220M of commercial mortgage-backed securities in a deal being managed by Deutsche Bank, 
CoStar reported. The debt is secured by a portfolio of 1,609 social housing units let to local authority tenants, spread across 
113 separate developments. 

The portfolio is valued at £308M and provides annual income of £12M, and all of the units have been 
built within the last three years. Blackstone, led in Europe by James Seppala, first moved into the UK social housing sector by
backing Sage, which was then a very small player in the market. 

In an event hosted by Savills last autumn, reported on by 
Inside Housing, Sage interim chief executive Rod Cahill said the registered provider had already agreed contracts to provide 
7,300 homes and was in talks on another 2,800, which would take its portfolio past 10,000 homes. 

If those 10,000 homes had roughly the same value as those secured by the Deutsche Bank CMBS, that would put the value of 
Sage’s portfolio at close to £2B. Social housing has become an attractive investment sector for private equity firms,
hedge funds and listed investors because while the returns are not typically high and rental growth is capped, the income
is very secure and regular. In other markets like Spain and Scandinavia, Blackstone has made opportunistic returns investing
in social housing by building up large businesses and refinancing assets.

Sage has typically bought affordable units being
built by private sector developers or other housing associations. Just over half of the portfolio is located in the south 
east of England and London, with the rest spread across the Midlands and east of England. Two-thirds are houses, a third are
flats, and the majority have two or three bedrooms.

 

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A new sale of commercial real estate debt securities has provided a rare insight into Blackstone’s UK social housing investment
strategy, which is on course to become a £1B-plus business. 

Blackstone-backed Sage Housing is selling £220M of commercial mortgage-backed securities in a deal being managed by Deutsche Bank, 
CoStar reported. The debt is secured by a portfolio of 1,609 social housing units let to local authority tenants, spread across 
113 separate developments. 

The portfolio is valued at £308M and provides annual income of £12M, and all of the units have been 
built within the last three years. Blackstone, led in Europe by James Seppala, first moved into the UK social housing sector by
backing Sage, which was then a very small player in the market. 

In an event hosted by Savills last autumn, reported on by 
Inside Housing, Sage interim chief executive Rod Cahill said the registered provider had already agreed contracts to provide 
7,300 homes and was in talks on another 2,800, which would take its portfolio past 10,000 homes. 

If those 10,000 homes had roughly the same value as those secured by the Deutsche Bank CMBS, that would put the value of 
Sage’s portfolio at close to £2B. Social housing has become an attractive investment sector for private equity firms,
hedge funds and listed investors because while the returns are not typically high and rental growth is capped, the income
is very secure and regular. In other markets like Spain and Scandinavia, Blackstone has made opportunistic returns investing
in social housing by building up large businesses and refinancing assets.

Sage has typically bought affordable units being
built by private sector developers or other housing associations. Just over half of the portfolio is located in the south 
east of England and London, with the rest spread across the Midlands and east of England. Two-thirds are houses, a third are
flats, and the majority have two or three bedrooms.

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Steve Keen on Spain 

Steve Keen – Spain’s Economic woes were a “Textbook” Example of the Perils of not just Textbook Economics, but the Euro as well

https://braveneweurope.com/steve-keen-spains-economic-woes-were-a-textbook-example-of-the-perils-of-not-just-textbook-economics-but-the-euro-as-well

Not sure if this got a mention from 3 months back  ..

Spain’s $6 Trillion Home Market Faces Second Crash in Decade

https://www.bloomberg.com/news/articles/2020-06-12/spanish-real-estate-is-heading-for-its-second-crash-in-a-decade

 

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A new sale of commercial real estate debt securities has provided a rare insight into Blackstone’s UK social housing investment
strategy, which is on course to become a £1B-plus business. 

Blackstone-backed Sage Housing is selling £220M of commercial mortgage-backed securities in a deal being managed by Deutsche Bank, 
CoStar reported. The debt is secured by a portfolio of 1,609 social housing units let to local authority tenants, spread across 
113 separate developments. 

The portfolio is valued at £308M and provides annual income of £12M, and all of the units have been 
built within the last three years. Blackstone, led in Europe by James Seppala, first moved into the UK social housing sector by
backing Sage, which was then a very small player in the market. 

In an event hosted by Savills last autumn, reported on by 
Inside Housing, Sage interim chief executive Rod Cahill said the registered provider had already agreed contracts to provide 
7,300 homes and was in talks on another 2,800, which would take its portfolio past 10,000 homes. 

If those 10,000 homes had roughly the same value as those secured by the Deutsche Bank CMBS, that would put the value of 
Sage’s portfolio at close to £2B. Social housing has become an attractive investment sector for private equity firms,
hedge funds and listed investors because while the returns are not typically high and rental growth is capped, the income
is very secure and regular. In other markets like Spain and Scandinavia, Blackstone has made opportunistic returns investing
in social housing by building up large businesses and refinancing assets.

Sage has typically bought affordable units being
built by private sector developers or other housing associations. Just over half of the portfolio is located in the south 
east of England and London, with the rest spread across the Midlands and east of England. Two-thirds are houses, a third are
flats, and the majority have two or three bedrooms.

When I read this I actually had a familiar feeling, the last crash was managed to allow the bond holders to get out of the market or be bailed out.  Are houses being given that last shot of adrenaline to allow the banks time to get out of the market and prepare? As a side note it’s perverse to turn housing into an investment vehicle.  I can understand the local chip shop owner renting a few flats to get a bit of income for the winter but the above is perverse. 

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Steve Keen on Spain 

Steve Keen – Spain’s Economic woes were a “Textbook” Example of the Perils of not just Textbook Economics, but the Euro as well

https://braveneweurope.com/steve-keen-spains-economic-woes-were-a-textbook-example-of-the-perils-of-not-just-textbook-economics-but-the-euro-as-well

Not sure if this got a mention from 3 months back  ..

Spain’s $6 Trillion Home Market Faces Second Crash in Decade

https://www.bloomberg.com/news/articles/2020-06-12/spanish-real-estate-is-heading-for-its-second-crash-in-a-decade

 

Quote: "Regions with high infection rates mostly have lower or negative price growth."

;)

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Lots of empty airbnbs as well I guess, lots of oldies pegging it, lots of unemployment, overbuilding in tourist areas, climate change hitting the south (it’s on track to turn into desert by 2100), maybe even some expats selling up for brexit...

 

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Lots of empty airbnbs as well I guess, lots of oldies pegging it, lots of unemployment, overbuilding in tourist areas, climate change hitting the south (it’s on track to turn into desert by 2100), maybe even some expats selling up for brexit...

 

I can see Spain being 'handed' to the 3rd world and a new European border being built along the Pyrenees, much more defendable.

Edited by msi
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I can see Spain being 'handed' to the 3rd world and a new European border being built along the Pyrenees, much more defendable.

Italy and Greece would not be happy with that. 

My last visit to Spain I watched a thief in a park stalking two tourist girls lying in the sun for at least an hour. He was furious (swearing, gesticulating) that we, and some Saffas nearby, wouldn’t leave him to it. 

I can’t be bothered going somewhere you have to be on your guard all the time. 

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Italy and Greece would not be happy with that. 

My last visit to Spain I watched a thief in a park stalking two tourist girls lying in the sun for at least an hour. He was furious (swearing, gesticulating) that we, and some Saffas nearby, wouldn’t leave him to it. 

I can’t be bothered going somewhere you have to be on your guard all the time. 

I can't imagine they would be happy, but given their financial position they aren't in a position to complain. 

Germany will engineer a financial control that isn't acceptable and we'll have Grexit and Itaexit.  2 failed nations to be a warning alongside the UK.

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I can't imagine they would be happy, but given their financial position they aren't in a position to complain. 

Germany will engineer a financial control that isn't acceptable and we'll have Grexit and Itaexit.  2 failed nations to be a warning alongside the UK.

Italeave me thinks.

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  • 441 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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