Stephen Schwarzman, Ceo di Blackstone
Blackstone, default in Finland will not lead to bankruptcy. Here because
Blackstone there is no risk of failure. In recent days, the New York financial giant with over a trillion dollars of assets under management has come under the spotlight of various newspapers for an alleged risk of bankruptcy.
In fact, the specialized media speak of a default its a bond covered by a Finnish real estate portfolio Shore Oy, consisting of shops and offices. The Nordic company would therefore not have been able to repay the bondforcing Blackstone to block the repayment of the funds, for a default of 531 million euros.
Leaving everything else aside, you don’t need to be an economist to understand that a “hole” worth just over half a billion cannot be “fatal” for a financial giant that in 2022 managed liquid funds for over 10 trillion dollars, billing over 17 billion.
But let’s get to the data. According to the sources of Affaritaliani.itthe portfolio of Shore Oy currently includes 45 properties (up from 63 at the end of April 2018). All properties are located in Finland and consist mainly of offices (77% of total market value) and shops (17% of total market value). 6%, on the other hand, is made up of storage assets.
Following the disposals, 297.1 million euros therefore remain pending senior loan and 12.9 million euros of senior capex loan and not 531 million as has been written in recent days.
Il sale processwhich started in 2018 (with the sale of half of the original portfolio), has been slowed down by two years of draconian Covid (Finland was among the strictest in Europe) which made it difficult for buyers to view assets, and then by the war in Ukraine (Finland borders Ukraine and was therefore adversely affected). The rest of the portfolio in Finland is funded separately (and, moreover, has been successfully refinanced recently) and is performing well.
In summary, it will not be a Finnish “little hole” worth a few hundred million to put an end to the long and prosperous life of Blackstone.
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