Saturday, January 26, 2013

Blackstone's Studzinki Declares Real Estate in Europe Ripe for Plucking

In an interview with Reuter's Alex Smith, John Studzinki from the Blackstone Group declared that Europe is much calmer (See Author's "Future of Euro's Sustainability is Vulnerable"), that the concern of a collapse of the Euro had been removed and consequently, U.S. companies that were flush with cash, would possibly consider European opportunities as a target for investment. This was particularly true as a result of low yields in the U.S. as business continues to generate cash in an "all dressed up, no where to go" mode.

Although Mr. Studzinki is remaining mum on whether Blackstone will be making further investment in Europe, he did concede that institutions' willingness to shed their real estate portfolios in Europe is lagging, and that the possibility of further activity in this arena is probable.

Asked whether banks would become a source for M&A, Studzinki believed that given the regulatory restructuring that was taking place, it was unlikely that banks themselves would present themselves as attractive investment opportunities.

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