HSBC to sell $25 billion Australian loan portfolio to Blackstone

The Australian portfolio will be acquired by Virgo BidCo, a vehicle wholly owned by funds managed by Blackstone affiliates, in a transaction expected to close in the first half of 2027, subject to regulatory and competition approvals.

Blackstone said separately that it has invested in Australia for nearly two decades and plans to continue deploying significant capital to support the country's housing market.

HSBC said it would continue investing in its corporate and institutional banking business across Australia and New Zealand, moving away from consumer lending as part of the restructuring.

The transaction comes as Australia's housing market faces softer demand, with higher borrowing costs and tax changes weighing on investor activity.

Australian lender Westpac said in June mortgage applications had declined 10% since the government's May budget, while National Australia Bank on Thursday posted a 15% drop in applications in the June quarter.