Blackstone defaults on $562m Nordic property-backed CMBS – Reuters

March 2 (Reuters) – Blackstone Inc (BX.N) defaulted on a 531 million euro ($562.5 million) bond backed by a portfolio of offices and stores owned by Finnish firm Sponda Oy, reported Bloomberg News, as rising interest rates hit Europe. property values.

The asset management giant and prolific real estate investor asked bondholders for an extension to repay the debt, but they voted against it, the report said Thursday, citing people familiar with the matter.

Shares of the private equity firm fell 1.6%.

“This debt relates to a small portion of Sponda’s portfolio. We are disappointed that the Servicer has not advanced our proposal,” Blackstone said in an emailed statement Thursday.

“We continue to have full confidence in Sponda’s core portfolio and its management team,” the company added.

Blackstone’s $71 billion unlisted Real Estate Income Trust (BREIT) has also been in hot water. On Wednesday, BREIT said it was forced to limit withdrawals for the fourth consecutive month.

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Reporting by Jaiveer Shekhawat and Mehnaz Yasmin in Bengaluru; Editing by Anil D’Silva and Shinjini Ganguli

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