Blackstone defaults on Nordic-backed bond amid interest rate pressure on European property

Blackstone has defaulted on a €531m bond backed by a portfolio of offices and stores owned by Finnish company Sponda Oy, according to a report by Bloomberg News and followed up by Reuters. 

Blackstone had sought an extension from the bondholders to repay the debt, but they voted against it, the Bloomsberg report said on 2 March, citing people familiar with the matter.

"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 a statement on 2 March. 

"We continue to have full confidence in the core Sponda portfolio and its management team," the company added.