With a big deal for apartment buildings, the Blackstone Group is making a huge wager on housing.
The investment firm has agreed to buy control of 80 apartment complexes from General Electric, valuing the properties at about $2.7 billion, a person briefed on the matter said on Monday.
The deal reflects a gamble by Blackstone, whose real estate arm is its largest operation, that the business of residential housing is on an upswing. The deal with G.E. is the firm’s biggest investment in apartments in recent history.
The firm has also made a big bet on traditional homes as well, spending over $5.5 billion to snap up houses to rent for now and sell later.
Meanwhile, G.E. â€" whose finance arm is selling the apartment properties â€" has been looking to slim down its real estate holdings, as part of an overall effort to reduce its size and riskiness.
News of the transaction was reported earlier by The Wall Street Journal online.
