The real estate unit of Blackstone Group LP may wrest control of Multi Corp after its acquisitionof almost half of the corporate debt of the cash strapped shopping mall developer. The cost of the acquisition was at Eur900 million or US$1.2 billion according to two individuals knowledgeable of the situation.
The Gouda, Netherlands based Multi Corp had taken a hardline stance with its creditors as it said it will not pay interest on loans it obtained for purchases of commercial properties. Many of the creditors would most probably write down the debt or sell off their holdings, according to the anonymous sources.
With the control over the real estate company, Blackstone would gain a foothold into the European retail business. Multi operates in fourteen European Union countries and in Turkey. Should Blackstone obtain control, the firm would recapitalize the mall developer according to one of the the anonymous sources.
Peter Rose, spokesman for the private equity firm, declined to provide a comment on the deal. Multi did not immediately respond to an email request for a comment as it was not regular business hours.
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