The Blackstone Group, one of the world’s largest REITs, in its continued efforts to acquire prime commercial properties, recently announced the acquisition of OfficeFirst Immobilien. This is not the first time that Blackstone has made this bid, though. Germany’s IVG Immobilient AG, the parent company of OfficeFirst, had earlier thwarted Blackstone’s acquisition offer while it pulled the plug on its proposed IPO plans, which would have been the biggest IPO the European real estate sector this year. Although both parties have refused to disclose the offer price, various publications like the Wall Street Journal have pegged the deal at a staggering $3.6 bn. With this acquisition, Blackstone has expanded its ownership of prime commercial properties on almost every major German urban city, including Munich, Berlin, Dusseldorf and Stuttgart, among others.
With this consolidation, Blackstone now owns all 97 of the properties of the OfficeFirst portfolio, running into a massive 15.1 million square feet of prime urban real estate across Germany. Blackstone has maintained its significant expansion spree into the European real estate market within two years of aggressive acquisitions across the European real estate market, especially Germany. It is worth noting here that Blackstone already manages aroud $102 bn in capital in residential, office, retail and hotel properties across the US, Latin America, Asia and Europe.