Blackstone has suffered a legal setback in a dispute with not-for-profit housing operators that are trying to seize some of the US apartment buildings it bought for $5.1bn from AIG last year.
The private equity firm bought housing assets valued at more than $20bn during the coronavirus pandemic, including student halls of residence, a rent-to-buy landlord and AIG’s portfolio of 678 rent-controlled developments funded through a federal low-income tax credit programme.
The dispute is over the meaning of contracts that AIG signed more than a decade ago when it advanced money for construction in exchange for an allocation of tax credits.
Blackstone said it was “proactively working with these partners to resolve the inherited litigation”.
