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Though the United States represents the bulk of Blackstone'sreal estate holdings, the New York-based firm said last month itwas seeing more opportunities abroad. Europe's distressed realestate is coming up for sale and Asia's financial problems arecreating opportunities, making the two regions more attractivethan the higher priced U.S. market.
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Interestingly, the phenomenon of just sitting back and enjoying fat margins without making new investment probably has a different cause in Japan than in other places, like Britain. While when the pound dropped in 2008, British companies “priced to market,” simply allowing fat profits to roll in. That was likely driven in part by compensation practices in Britain, which tie executive pay closely to stock market movements through share options. British CEOs, faced with the option of a gratifying short-term bump in the value of their shares versus a risky long-term investment in more production, usually chose to take the money now.
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The company, whose services range from cleaning Sainsburysupermarkets to building shopping malls in the Middle East, saidheadline profit before tax rose to 36.8 million pounds ($56.90million) for the six months ended June 30 from 34.2 millionpounds a year earlier.
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