Blackstone Inc has defaulted on a 531-million-euro ($562.5 million) bond backed by a portfolio of offices and stores owned by Finnish company Sponda Oy, Bloomberg News reported, as rising interest rates hit European property values.
The asset management giant and prolific real estate investor sought an extension from the bondholders to repay the debt, but they voted against it, the report said on Thursday, citing people familiar with the matter.
Shares of the private-equity firm fell 1.6%.
"This debt relates to a small portion of the Sponda portfolio. We are disappointed that the Servicer has not advanced our proposal," Blackstone said in an emailed statement on Thursday.
"We continue to have full confidence in the core Sponda portfolio and its management team," the company added.
Blackstone's $71 billion unlisted real estate income trust (BREIT) has also been in hot water. On Wednesday, the BREIT said it was forced to limit withdrawals for the fourth straight month.
