Blackstone Group LP said that they are set to work with Deutsche Bank AG to create securities for properties owned by the private equity firm. Blackstone Group spent an estimated US$5 billion to buy more than 30,000 homes with plans to rent them out. The transaction with Deutsche Bank AG is to create rental home bonds for 1,500 of the rental properties.
Deutsche Bank AG said that they are may start marketing the Blackstone Group bonds as early as next month. The bonds are estimated to have US$250 million worth in balances and will be backed by collateral tagged at US$300 million to US$350 million.
The Blackstone Group AG has led private equity firms like Apollo Global Management LLC and Colony Capital LLC as they became known as large scale landlords in the recovering housing market. Blackstone Group AG said that they currently have a US$3.6 billion credit line from lenders that are led by Deutsche Bank AG.
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