Blackstone Group LP, which has the largest single-family rental business in the nation, is planning to sell bonds backed by lease payments to take advantage of rebounding home prices and a rising demand for rentals among millions of credit-challenged Americans, Bloomberg reported.
The world’s largest private equity firm, Blackstone has spent $7.5 billion to acquire 40,000 houses in the past two years. The firm’s securitization plans are “the latest step in turning a small business into a mature industry,” the news outlet said. Other large investors have made similar moves to raise capital for more property purchases and to boost returns.
Blackstone plans to hold onto its rental homes for years to take advantage of rising prices and an expected housing shortage due to underproduction after the financial crisis, according to Blackstone CEO Steve Schwarzman.