Private equity player Blackstone Group LP has finalized a real estate deal with Australia's Centro Property Group worth $9.4 billion.

According to online reports, nearest competitor for the Blackstone in the deal was Morgan Stanley Real Estate, but company won the deal over it. Morgan Stanley Real Estate teamed up with Starwood Capital Group and New York based NRDC, for bidding.

Deal includes purchase of about 600 US strip malls and other properties from Australian group. Real Estate portfolio includes 560 U. S. shopping centers with leading brands as tenants like Kroger Co, Safeway Inc, and Koninklijke Ahold NV. Centro's portfolio includes shopping centers as a result of its purchase of New Plan Excel Realty Trust for $6.2 billion when market was at peak in 2007. United States witnessed not-much devaluation in prices of shopping malls as they are usually located at prime locations and building new one is also a tough job. New construction face opposition from locals as malls brings more traffic for them.

This deal will enable Centro to reduce its debts. Blackstone is fast expanding its property portfolio. Recently it made a purchase of Hilton hotels chain and bought a 7.6% stake in General Growth Properties Inc. Company is also rapidly increasing its holdings in U. S. warehouse and distribution centers.