BlackRock expands real estate holdings, buys ElmTree Funds with $7.3 billion in assets. Check details
Blackrock Inc announced the purchase agreement of ElmTree Funds, a real estate company that renters commercial properties specially built for single tenants.
The purchase will add an investor with total assets of $ 7.3 billion in Blackrock’s portfolio.
Agreement structure and financial details
ElmTree will be integrated into special financing solutions, the newly established platform of Blackrock, which was created by the company’s purchase of $ 12 billion HPS Investment Partners last year. Bloomberg notified.
ElmTree’s payment will first be included in the stock with an additional evaluation potential based on ElmTree’s performance for the next five years.
Although the purchase price and other financial details have not yet been announced, the transaction is expected to be completed in the third quarter of this year.
ELMTREE’s niche business area
The real estate company was founded in 2011 by James G. Konomer, who is currently the Chairman of the Company (CEO) of the company.
ElmTree’s St. Louis, New York, Chicago, Austin, Phoenix and NewPort Beach, California have offices in various places. In addition, the company invests 122 properties in 31 cities of the United States.
The agreement will allow ElmTree, which is currently focusing on industrial real estates, to expand to new markets as a owner-operator. Bloomberg.
“Our specialized brick and mortar expertise will be increased with HPS’s ability to provide financing and other solutions, Jame said James Konomer, the founder and CEO of ElmTree.
Blackrock’s hold on the real estate market
The ElmTree acquisition is considered small compared to Blackrock’s recently controlled $ 11.6 trillion -dollar assets, while CEO Larry Fink’s goal of touching private markets in the search for hefier wages in the last two years.
News Agency reported that Blackrock has purchased other real estate companies, such as HPS and Global Infrastructure Partners as part of the purchasing frenzy in this sector.
