Blackstone Group, a U.S. investment firm, will take over management of Bank of America Corp (NYSE: BAC)’s Asian real-estate fund, according to several media reports.
Merrill Lynch raised $2.65 billion before it the firm was purchased by Bank of America Corp (NYSE: BAC) in January 2009 and invested all of that money into Asian property deals, in a single property fund called the Asia Opportunities Fund. Bank of America Corp (NYSE: BAC) will keep a one-third stake in the assets.
Bank of America Corp (NYSE: BAC)’s Merrill Lynch division will remain as the general partner of the fund, but contract out its management to Blackstone. The fund’s current staff of 60 will all join Blackstone.
Blackstone will pay Bank of America Corp (NYSE: BAC)’s Merrill Lynch division the right to collect management fees from investors, but the dollar amount has not been disclosed yet.
The deal is expected to close by the end of September.
