Bloomberg
Blackstone Group LP (BX)’s real estate unit is close to completing a restructuring of Multi Corp. that would give it full ownership of the debt-laden European mall developer, said two people with knowledge of the situation.
Blackstone, the biggest manager of private-equity property funds, has amassed more than 90 percent of Multi’s 900 million euros ($1.2 billion) of corporate debt and a similar share of its equity in the past 15 months, according to the people, who asked not to be named because the discussions are private. The New York-based firm is in talks to buy the rest of Multi’s loans and stock from a German lender, one of the people said.
Once the purchase is complete, Blackstone plans to forgive the debt and use Multi to snap up shopping malls and other retail properties across Europe. Blackstone believes Multi is in a position to capitalize on a wave of retail-property sales triggered by Europe’s economic woes, the person said.
Peter Rose, a Blackstone spokesman, declined to comment on Blackstone’s investment in Multi. Multi representatives didn’t respond to an e-mail sent after regular business hours yesterday.
Multi, based in Gouda, the Netherlands, owns and manages real estate throughout Europe, and the bulk of its assets are in Turkey. The largest Turkish mall landlord, Multi owns the country’s two largest retail centers, both in Istanbul, along with six malls in other cities, according to this person.