Blackstone bets on housing recovery, buys 2,000-plus homes-for-rent

July 18, 2012|Ilaina Jonas | Reuters
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NEW YORK (Reuters) – Blackstone Group LP has spent more than $300 million to purchase over 2,000 foreclosed homes in order to rent and bet on a recovery of the U.S. housing market, the private equity company’s global head of real estate said Wednesday.

“Our bet is over time, vacant homes will fill up and markets will begin to recover,” said Jonathan Gray, senior managing director and global head of real estate. “Our exit will be to sell the individual homes to the renters themselves, or there could be a very large market for public housing units.”