Blackstone Group LP’s debut sale of bonds backed by rental homes is paving the way for Cerberus Capital Management LP and Colony Capital LLC as Wall Street creates a new market to expand funding for the industry.
Colony Capital LLC founder and Chairman Tom Barrack said Sebastien Bazin, who is stepping down as Colony’s European investment chief to take the reins at Accor SA, was the best choice to revamp the French lodging company.
Blackstone Group LP raised more than $4 billion in 2009 to buy European property assets anticipating that cash-strapped banks would be forced to sell as the region’s debt crisis worsened. Almost all of it sat idle for two years.
Sebastien Bazin, Colony Capital LLC’s head of European investing, will take over as chairman and chief executive officer of Accor SA as the lodging company focuses on reducing the proportion of hotels it owns.
Rents for single-family homes are rising slower than property prices as firms such as Blackstone Group LP flood the market with homes for lease, posing risks to investors betting billions on the burgeoning market.