Blackstone shares gain for a second straight session on Friday, company bids $2.3 billion for Australia’s Investa Office Fund

Blackstone Group was reported to have offered AUD 3.08 billion ($2.3 billion) for the acquisition of Investa Office Fund (IOF) in an attempt to deepen its exposure to commercial property in Australia.

Blackstone shares closed higher for a second consecutive trading session in New York on Friday. The stock edged up 0.38% ($0.12) to $31.92, after touching an intraday high at $32.08, or a price level not seen since May 10th ($32.09).

In the week ended on May 27th the shares of the global alternative asset management company added 2.01% to their market value compared to a week ago, which marked the third gain out of eight weeks.

In a statement on Monday, directors of Investa Office Fund said that the unsolicited and non-binding offer would be recommended unanimously.

Blackstones offer comes two years after IOF’s shareholders did not support a AUD 2.5 billion bid made by Australias DEXUS.

According to Reuters, Blackstones decision is a bet on the future of commercial property across the east coast of Australia. Despite that the countrys retail property market is currently facing difficulties, analysts project strong demand to support yields on office space in locations such as Sydney.

21 of IOF’s 36 properties are located namely in Australias most populous city.

According to CNN Money, the 12 analysts, offering 12-month forecasts regarding The Blackstone Group LP’s stock price, have a median target of $39.50, with a high estimate of $46.00 and a low estimate of $31.00. The median estimate is a 23.75% surge compared to the closing price of $31.92 on May 25th.

The same media also reported that 13 out of 15 surveyed investment analysts had rated The Blackstone Group LP’s stock as “Buy”, while 1 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Blackstone stock are presented as follows:

R1 – $31.97
R2 – $32.02
R3 (Range Resistance – Sell) – $32.07
R4 (Long Breakout) – $32.23
R5 (Breakout Target 1) – $32.41
R6 (Breakout Target 2) – $32.49

S1 – $31.87
S2 – $31.82
S3 (Range Support – Buy) – $31.77
S4 (Short Breakout) – $31.61
S5 (Breakout Target 1) – $31.43
S6 (Breakout Target 2) – $31.35

By using the traditional method of calculation, the weekly levels of importance for The Blackstone Group LP (BX) are presented as follows:

Central Pivot Point – $31.76
R1 – $32.24
R2 – $32.56
R3 – $33.04
R4 – $33.52

S1 – $31.44
S2 – $30.96
S3 – $30.64
S4 – $30.32