These 1980s Suburban Offices Back Blackstone’s Securities in Default
- The notes are backed by a portfolio of Finnish offices, stores
- Blackstone has been trying to sell the underlying properties
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The prospectus for Blackstone Inc.’s now-defaulted commercial mortgage-backed security extolled the central location and tenants of its top holdings.
The properties included two hypermarkets with two of Finland’s biggest retailers S-Group and Kesko Oyj as tenants, according to the note’s offering documents. Still, two thirds of the portfolio was made up of small suburban office properties, many appearing to date from the 1980s, with less than €10 million ($10.6 million) of the loan facility allocated to each of them.