![\"Blackstone](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/hsbc-bank-Australia.jpg\")
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HSBC\u2019s never built a branch network to compete with Australia\u2019s biggest players (Image: HSBC)<\/p>\n
Blackstone is buying HSBC\u2019s A$36 billion ($25 billion) Australia home mortgage portfolio in what it calls the largest residential loan portfolio deal ever.<\/p>\n
Funds managed by Blackstone Credit & Insurance, Blackstone Tactical Opportunities, and Blackstone Real Estate Debt Strategies have agreed to finance the acquisition of the mortgages from HSBC, the company announced<\/a>, as the bank seeks to exit an Australia market where foreign lenders have struggled to compete with the largest local players.\u00a0<\/p>\n Blackstone, which has a long-established taste for property loan portfolios, positioned the investment as a way to expand its lending operations further into APAC.\u00a0<\/p>\n \u201cInternational expansion is a major priority for our private credit business,\u201d Dan Leiter, head of international for Blackstone Credit and Insurance said. \u201cBlackstone\u2019s global credit platform, deep origination capabilities, and long-standing relationships position us to deliver unique value to clients around the world.\u201d<\/p>\n Market Retreat<\/p>\n While HSBC\u2019s approximately $3.3 trillion in assets ranks among the world\u2019s largest banks, in Australia the company\u2019s business remains a fraction of the size of market champions CBA, Westpac, NAB and ANZ, with Macquarie Bank aggressively adding to its market share.\u00a0<\/p>\n Jonathan Gray, Blackstone president and COO Jon Gray is growing its lending business (Image: Blackstone)<\/p>\n Since entering the country\u2019s retail lending business in 1991, HSBC has established a branch network numbering less than 20, while the major players have hundreds of outlets.\u00a0<\/p>\n In a statement, HSBC said that, aligned with the mortgage portfolio sale, which is expected to close in the first half of 2027, the remainder of its retail business in Australia would be wound down over the next 18 months, as it emphasises other markets.<\/p>\n \u201cThe decision to sell the Portfolio and wind down the remainder of the retail business follows a strategic review of HSBC Australia\u2019s retail business and forms part of the ongoing simplification of the HSBC Group,\u201d the company said in a statement<\/a>. \u201cHSBC is focused on increasing leadership and market share in the areas where it has clear competitive advantage and the greatest opportunities to grow and support its clients.\u201d<\/p>\n While Blackstone is taking ownership of the loans, the portfolio will be managed by KKR-backed non-bank lender Pepper Money, which took over HSBC\u2019s NZ$1.4 billion (now $823 million) home mortgage portfolio in New Zealand during 2023<\/a>.\u00a0<\/p>\n Expanding Credit Business<\/p>\n The investment was facilitated by Blackstone\u2019s rapid expansion of its lending business, which grew to more than half a trillion dollars in assets under management by the end of June, according to comments by company leaders in a call with analysts on 23 July.\u00a0<\/p>\n \u201cStepping back for a moment on credit, our combined platform has grown to nearly $550 billion across corporate and real estate credit, up 13% year over year,\u201d Blackstone president and COO Jon Gray, said in the discussion<\/a>.\u00a0\u00a0<\/p>\n Blackstone announced the HSBC deal after the company said in April<\/a> that it had reached a final close on over $10 billion in capital for its Blackstone Capital Opportunities Fund V, which invests in a broad range of private lending opportunities.\u00a0<\/p>\n Following its preference for adapting proven game plans into new markets, the Australia deal echoes a 2024 deal where Blackstone Real Estate Debt Strategies acquired a $1 billion portfolio<\/a> of performing senior mortgage loans from German lender, Deutsche Pfandbriefbank (PBB).<\/p>\n In 2023, Blackstone Real Estate Debt Strategies and Blackstone Real Estate Income Trust teamed up with a unit of Canada Pension Plan Investment Board (CPPIB) and US investor Rialto Capital in a joint venture with the Federal Deposit Insurance Corporation (\u201cFDIC\u201d) to purchase a 20 percent stake<\/a> in a vehicle holding a $16.8 billion loan portfolio in the US. That purchase from receivers overseeing the assets of failed lender Signature Bank was valued at $1.2 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"HSBC\u2019s never built a branch network to compete with Australia\u2019s biggest players (Image: HSBC) Blackstone is buying HSBC\u2019s…\n","protected":false},"author":2,"featured_media":95775,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20667],"tags":[583,38965,37579,311,9881,25693],"class_list":["post-95774","post","type-post","status-publish","format-standard","has-post-thumbnail","category-hsbc","tag-australia","tag-blackstone","tag-daily-sp","tag-featured","tag-hsbc","tag-private-credit"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117026496443916736","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/95774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=95774"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/95774\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/95775"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=95774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=95774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=95774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Jon](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/Jon-Gray-President-Blackstone.jpg\")
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