Blackstone to buy Valad Property Group

The Blackstone Group has agreed to buy Australia’s Valad Property Group in cash, with an equity outlay of around $226m.

The Blackstone Group has agreed to buy Valad Property Group, the Australian-based property company.

Valad made the announcement today, 24 hours after shares in the group were halted at the request of the company as it revealed to the Sydney stock exchange discussions had been taking place with a third party in relation to a “material transaction” regarding the whole of the Valad Group.

Blackstone Real Estate Partners VI is buying the group for A$ 1.80 per stapled security and will pay $226 million in equity to acquire it. Reports today added Blackstone is taking on Valad's liabilities, including up to A$500 million of debt.

Valad said the agreement represented a substantial premium to the recent share price but a discount to net assets as at 31 December 2010.

The Australian Financial Review tipped Blackstone yesterday as the acquiring party.

The deal gives Blackstone a toehold in the Australian property market.