Blackstone Said to Seek Doubling of Credit Line for Homes

Blackstone Group LP (BX), the largest private U.S. real estate investor, is in talks with Deutsche Bank AG (DBK) to double its line of credit for buying single-family rental homes to $1.2 billion, according to two people with knowledge of the negotiations.

Deutsche Bank extended a $600 million line of credit in October to Blackstone to pay for the properties. The Frankfurt- based lender will lead a group of banks that will contribute an additional $600 million, according to the people, who asked to be identified because the talks are private.

Blackstone has been spending about $100 million a week on homes in states such as California, Arizona, Florida and Nevada to take advantage of prices below replacement cost and rising demand for rentals, Chairman Stephen Schwarzman said in October.

Renee Calabro, a spokeswoman for Deutsche Bank in New York, and Christine Anderson, a spokeswoman for New York-based Blackstone, declined to comment.

To contact the reporter on this story: John Gittelsohn in Los Angeles at johngitt@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

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