Real Estate PE and Real Estate Investing

21's picture
Rank: Baboon | 119

Could somebody please explain to me what the difference is between BREP and Real Estate Asset Management at Blackstone? Is it the case that BREP is involved in the acquisition of real estate and the subsequent management of it is done by RE AM?

Private Equity (BREP):
Blackstone's Real Estate Private Equity Group offers interns the chance to engage in the direct acquisition of real estate-related companies, portfolios of real estate assets, and individual properties worldwide. Interns at Blackstone have the opportunity to participate in all aspects of real estate investing and can expect to be staffed on a number of transactions at one time. Due to the relatively small size of the professional staff, interns are expected to assume integral roles on deal teams. Interns are involved with the development, structuring, and financing of transactions and regularly attend both external and internal meetings, negotiations and due diligence sessions.

Real Estate AM:
Blackstone's Real Estate Asset Management Group offers interns the opportunity to support various asset-level initiatives including leasing, capital expenditure, operational and management changes, re-financings and dispositions across a range of asset classes, financial modelling and analysis to evaluate portfolio investments and strategic decisions, develop and implement systems for evaluating portfolio investments in connection with competitive set, budget, tax and financing analysis, support commercial aspects of fund management including investor relations, fundraising and return analysis, interface with portfolio companies, JV partners, external advisors and the financial reporting team to promote consistency and drive synergies across investments, develop detailed cash flow models for quarterly asset valuations and liaise with internal teams on other various ad-hoc projects.

How does the Real Estate Debt Strategies group fit into all this?

Blackstone's Real Estate Debt Strategies Group offers interns the opportunity to participate in a wide range of US and European real estate debt transactions including: new loan originations, acquisitions of legacy loans, CMBS and other forms of public and private debt, restructurings and recapitalisations. Summer Analysts are involved with the analysis, development, structuring, and financing of transactions and regularly attend client and internal meetings, negotiations and due diligence sessions.

Thanks!

Region: 

Comments (8)

Sep 13, 2015

Yes you pretty much said it all

BREP: Acquisitions on asset and portfolio level
Asset Management: Asset level asset management (duh)
Loan Group: Deals with the debt structuring on the portfolio/assets

Whats the confusion?

Sep 14, 2015

Thanks for the replies. Could you explain a bit more about what the loan group does? What do you mean by debt structuring on portfolio/assets? Do you mean that the group helps to issue loans off the back of the assets?

Sep 17, 2015
cre123:

Yes you pretty much said it all

BREP: Acquisitions on asset and portfolio levelAsset Management: Asset level asset management (duh)
Loan Group: Deals with the debt structuring on the portfolio/assets

Whats the confusion?

Not to be rude, but your categorization of BREDS is wrong. You don't work on financing BX deals as much as you work on whole loan origination for BXP or bespoke lending for the BREDS portfolio.

Sep 17, 2015

Where did I say anything about BREDS relative to financing?

Sep 13, 2015

I'm interning in RE PE right now, and you basically nailed it.

Our underwriting department (which would be BREP, and note that RE PE underwriting is different from IB) handles all the work of sourcing deals and handles all the comps modelling, due diligence, etc. that takes place before the project begins development. Once that happens, it gets handed off to the AM department which looks after the project until our exit.

Sep 15, 2015

Interested in hearing about BX Real Estate Debt Strategies