GE Capital to Sell RE Assets to Blackstone, Wells Fargo
GE is unwinding its financial companies, and as a consequence, is selling off its real estate assets. Blackstone and Wells Fargo have reportedly agreed to buy GE Capital’s real estate assets for $23bn. This is the largest deal of its kind since Blackstone acquired Equity Office Properties Trust in 2007.
A few links with deal specifics:
http://www.wsj.com/articles/ge-close-to-selling-real-estate-holdings-1428600831
http://blogs.wsj.com/moneybeat/2015/04/14/wells-fargos-cfo-opens-up-on-ge-deal/
http://www.zacks.com/stock/news/170650/blackstone-amp-wells-fargo-to-buy-ge-capital-assets-for-23b
Frequently Asked Questions about GE Capital’s Sale of Real Estate Assets
Why is GE Capital selling its real estate assets?
GE is unwinding its financial companies as part of a broader strategy to shift away from financial services and refocus on its core industrial business. The sale of its real estate assets is a major step in that process.
Who are the buyers in this transaction?
Blackstone and Wells Fargo are the primary buyers. Blackstone will take over the bulk of the assets, while Wells Fargo is acquiring a portion, primarily debt-related.
How much is the deal worth?
The deal is valued at $23 billion, making it one of the largest real estate transactions since Blackstone’s acquisition of Equity Office Properties Trust in 2007.
Why is this deal significant for the real estate market?
The size and scope of the deal reinforce Blackstone’s position as a dominant global real estate investor and reflect a continued institutional appetite for large-scale real estate assets, especially from financial institutions exiting the space.
Where can I find more information about this transaction?
You can read more about the deal here:
Wall Street Journal: GE Close to Selling Real Estate Holdings
WSJ MoneyBeat: Wells Fargo CFO on GE Deal
Economic Times: Giant Landlord is Betting Large
Property Magazine: Wells Fargo and Blackstone Purchase GE Assets
Zacks: Blackstone & Wells Fargo to Buy GE Capital Assets
