The head of Blackstone, the world’s largest alternative investment fund, sees a big opportunity in Chinese real estate.
Stephen Schwarzman, who left Lehmann Brothers to build Blackstone from a six-figure company into the $210 billion behemoth it is today, believes that while there are some troubles in China’s economy there are big gains in distressed real estate.
“In the long term, it is very difficult to bet against China,” Schwarzman told Angus Grigg at The Australian Financial Review.
Blackstone recently bought a large office building in Shanghai at a knockdown price when the developer ran into trouble.
“I think there will be lots more of these opportunities,” Schwarzman said.
“I think there are obviously some excesses in the economy . . . in the real estate sector, but my sense is the country will come through fine.”