Private equity firm, Blackstone Group LP, was getting ready to expand its stake on housing recovery. The New York-based company paid US$5 billion for approximately 30,000 distressed homes. It would try to expand through lending to other landlords.
Blackstone was in possession of more rental houses than any other venture capitalist. The company set up B2R Finance LP to propose loans starting at U$10 million. The information came from four sources who reviewed the terms.
B2R would extend to landlords with tranches of assets. People who wanted to grow in the flourishing industry would be welcome.
The world's biggest private-equity firm would benefit from smaller landlords through raising its shares in the rebound by lending. Goldman Sachs Group Inc. estimated the market to be US$2.8 trillion.
"The more financing that comes to the space, the better to legitimize the industry," chief executive officer of Haven Realty Capital LLC, Sudha Reddy, said. "Not all investors are able to get a large credit facility and small ones from community banks aren't big enough."
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