Blackstone to spend US$1bil offering tenants reduced rents


“The lack of housing supply is a national crisis,” Kathleen McCarthy, global co-head of Blackstone Real Estate, said in a statement.

NEW YORK: Blackstone Inc plans to spend US$1bil (RM4.18bil) to acquire rental houses and lease them out at below-market rates, billing the programme as a private-sector answer to soaring housing costs.

Home Partners of America, a single-family rental company that Blackstone bought last year, is offering the programme, called Choice Lease.

It will provide tenants who meet an income threshold a 10% discount on monthly rent payments and the option to purchase their homes at below-market rates.

The move comes as a United States housing shortage pushes rents and purchase prices higher. With many first-time buyers struggling to crack the market, politicians have raised concerns about the role Wall Street investors are playing in the housing market.

“The lack of housing supply is a national crisis,” Kathleen McCarthy, global co-head of Blackstone Real Estate, said in a statement.

“We are proud to support Home Partners’ mission of addressing housing access and affordability while also providing underserved populations with a new path to homeownership.”

Home Partners, which Blackstone acquired last year through BREIT, its nontraded real estate investment trust, has a somewhat different business model than most single-family landlords.

It buys a home on behalf of its client, who then rents it back on a series of one-year leases. At the end of each lease, the tenant can buy the house.

The company owned 17,000 houses at the time Blackstone agreed to acquire it for US$6bil (RM25.07bil).

Households must earn 80% or less of the area median income to qualify for the Choice Lease programme.

That’s similar to government affordable housing programmes that cap rents on certain apartments based on how much a household earns. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Blackstone , renants , reduced rents ,

   

Next In Business News

Ringgit opens marginally higher as greenback demand eases
Singapore economy expands 3.7% in Q1 2022
Leong Hup faces near-term headwinds
Bursa bounces after sharp losses
Trading ideas: KLK, KLCCP Staple Group, TSH Resources, UWW Holdings, Farm Fresh, Boustead Heavy Industries, Menang, Perak, Sime Darby, Malakoff, Pekat Group and GDeX
Facing crisis, Sri Lanka to cut spending 'to the bone'
India could cut import tax on some edible oils to tame local prices
Africa objects, Malaysia has reservations, on US push to reform health rules at WHO
GLOBAL MARKETS-Stocks tumble on growth concerns, bond yields slip
Oil steadies after choppy trade, US says export ban not ruled out

Others Also Read