Canadian Real Estate? Blackstone Says No Thanks
Blackstone president Tony James says Canada’s real estate markets are overvalued and its energy assets uneconomical—making the US and elsewhere more appealing for investment.
“Canada is not a real estate market we love," Tony tells Bloomberg. "Prices are pretty full, yet it’s much easier to have more supply.”
The world’s largest alternative asset manager is on the hunt for energy assets as well, but lack of pipeline capacity and high cost of production has it looking away from the Great White North.
“The US has a developed pipeline network and it’s near the big markets,” Tony tells Bloomberg. Unlike Canada, there are productive basins in the US where investors can produce and make money with oil at $20/barrel and gas at $3, he says.
Still, the PERE giant isn’t scared to invest alongside Canadian asset managers—its $5.3B Stuy Town purchase partnered with Canadian pension fund Caisse de Depot et Placement du Quebec. [Bloomberg]
