Catenaa, Friday, December 19, 2025-Blackstone is facing growing difficulty selling its largest European real estate platforms as higher interest rates, weak valuations and a shortage of large buyers stall major transactions.
The world’s biggest private equity real estate investor built multibillion-dollar platforms over the past decade in logistics, student housing, hotels and offices, bundling assets into portfolios designed for large exits.
That model is under strain as borrowing costs remain elevated and listed landlords trade at deep discounts to asset values.
This year, Blackstone sought to sell a portfolio of UK logistics assets, including a Tesco distribution center near Birmingham. Instead of a clean sale, the firm transferred the properties to Tritax Big Box REIT in exchange for cash and an equity stake, keeping indirect exposure to the assets.
Large-scale exits have become harder across Europe.
According to market data, billion-euro property deals have dropped sharply since 2022 as sovereign wealth funds and institutions avoid concentrated bets.
Buyers now favor smaller transactions or cherry-pick individual assets rather than acquire full platforms.
Blackstone said it has sold or agreed to sell nearly €50 billion of European assets since 2022, though a large portion involved internal recapitalizations rather than third-party buyers.
Several funds have seen slower returns as investments remain unsold beyond their typical holding periods.
Initial public offerings, once viewed as an alternative exit route, are also largely closed as property stocks trade well below net asset value.
As a result, Blackstone and its rivals are increasingly holding assets longer or shifting them between funds.
While falling interest rates may improve conditions, selling large portfolios remains challenging, leaving significant real estate exposure on Blackstone’s balance sheet.
