Blackstone Group (BX.US) is reportedly set to acquire two service apartment buildings in Hong Kong for HK$750mn, marking its formal entry into Hong Kong's rental residential market.

On September 9, according to market news, Blackstone Group (BX.US) is in advanced negotiations to acquire two serviced apartment buildings in Hong Kong, which could mark the group's official entry into the Hong Kong rental housing market and further expand its real estate business in Asia. Blackstone Group is reportedly in exclusive negotiations with the seller CHI Residences for the transfer of Taiji Xuan 138 (107 units) in Wan Chai, Hong Kong and Taiji Xuan 314 (59 units) in Jordan MTR Station, Kowloon. The total price of the acquisition could be as high as HK$750 million (about US$96 million), which would translate to a price of nearly HK$4.5 million per unit. Blackstone Group has conducted a thorough due diligence on the two properties and plans to work with Dash Living, a rental housing operator, to manage and operate the assets together. Blackstone Group Chairman and CEO Stephen Schwarzman previously stated that the group's asset values are expected to rise further as inflation continues to fall and the Fed's rate cut expectations increase. He specifically noted that real estate investments would benefit from future rate cut policies, laying the foundation for the company's long-term significant monetization cycle.