Fri Nov 18, 2011 9:25pm EST
(Reuters) – Private equity firm Blackstone Group (BX.N) is set to buy a portfolio of 16 office buildings for about $800 million, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The buildings, spread across six U.S. cities, are currently owned by a Morgan Stanley real-estate fund, which acquired them when it bought Glenborough Realty Trust in 2006, the business daily said.
The real estate fund decided to transfer the remaining buildings to Blackstone rather than repay some $820 million in loans due in December, the paper reported.
Blackstone is talking to lenders to arrange financing for the acquisition, the Journal said.
Blackstone is buying more assets and attracting new money from investors, flexing its muscle as losses pile up at private equity firms. Last month, it agreed to buy 82 suburban office properties for $1.08 billion from Duke Realty Corp (DRE.N).
“Dry powder,” or capital available to invest, reached a record $33.4 billion, giving Blackstone plenty of time and firepower to buy assets when others are pulling back or finding it harder to do deals.
Blackstone did not immediately respond to a request seeking comment.
(Reporting by Jochelle Mendonca in Bangalore; Editing by Viraj Nair)
Jacqueline Tongko 