Blackstone Real Estate Debt Strategies Reaches $3.5 Billion in Committed Capital

NEW YORK--(BUSINESS WIRE)--Blackstone Real Estate Debt Strategies (“BREDS”), the real estate debt investment business of The Blackstone Group (NYSE: BX), today announced the final closing of its most recent debt strategies fund, Blackstone Real Estate Special Situations Fund II (“Fund”) on February 1, 2011.

“As real estate markets begin their recovery, Blackstone is uniquely positioned to meet an increasing demand for debt capital to recapitalize legacy assets and acquire new assets.”

Together with previously announced commitments, this closing brings total commitments in BREDS funds to $3.5 billion. BSSF II will provide urgently needed debt capital to the commercial real estate industry as it begins its recovery. Recent transactions include providing mezzanine loans that facilitated RLJ Development’s acquisition of the Doubletree Metropolitan Hotel, Savanna Partners’ acquisition and recapitalization of 1375 Broadway (both in Manhattan), mezzanine financing for Republic Properties Corporation’s recapitalization of their 25 Massachusetts Avenue office building in Washington, DC, as well as enabling the refinancing of the Four Seasons Austin and Miami Airport Corporate Center.

Michael Nash, Senior Managing Director of The Blackstone Group and Chief Investment Officer of BREDS, said, “As real estate markets begin their recovery, Blackstone is uniquely positioned to meet an increasing demand for debt capital to recapitalize legacy assets and acquire new assets.”

About The Blackstone Group

Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, solutions using hedge funds, credit-oriented funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com.