Blackstone’s iQ Buys Defaulted London Office for Dorms (1)

Blackstone Inc.’s iQ Student Accommodation business has bought a plot of central London land out of receivership after its previous owner defaulted on a loan from the billionaire Reuben Brothers.

The 1.4 acre plot — the former Blackfriars Crown Court in Southwark — changed hands at a significant discount to the value of the outstanding debt, people familiar with the matter said, asking not to be identified as the information is private. A Blackstone representative declined to comment on the price paid.

The former Blackfriars Crown Court site was previously granted permission to be redeveloped into an office project with roof garden.

The project had a book value of £50 million ($64 million) and a total outstanding ...