Blackstone to buy Centro US assets

SYDNEY, Feb 28 (Reuters): Private equity firm Blackstone Group will pay about $9.4 billion for the US shopping mall assets of Australia's debt-laden Centro Properties after winning a three-way bidding contest, a source with knowledge of the transaction said Monday. Blackstone beat rival bidders including Morgan Stanley Real State which had teamed up with Starwood Capital Group and New York-based NRDC, the source said. Blackstone agreed to pay book value for the assets which Centro has valued at around $9.4 billion, the source said, confirming media reports. Shares in Centro were earlier placed in a trading halt ahead of an announcement about a potential transaction. Centro narrowed down bidders for the US shopping mall assets to three consortiums, including Blackstone, sources told the reporter on February 9 with final bids for the 600 US properties due in late February.