HSBC (0005) is set to sell an A$30 billion (HK$164.74 billion) Australian loan book to Blackstone, marking the US-based alternative asset manager's entry to Australia's home lending market, the Australian Financial Review reported.
The sale is part of a broader effort to streamline operations led by chief executive officer Georges Elhedery, Bloomberg reported, citing people familiar with the matter.
Blackstone has outbid other firms to be the likeliest buyer for the loan book, the people said, but no final decisions have been made as talks are still ongoing.
HSBC and Blackstone representatives declined to comment.
Domestic banks dominate Australia's A$2.5 trillion residential lending market, relying heavily on this sector to sustain their profits, AFR reported, with Commonwealth Bank of Australia having the largest share of the market.
However, the industry has attracted smaller competitors. HSBC had earlier planned to sell the entire business to National Australia Bank or Macquarie Group, but the deal later fell through.
The assets had drawn interest from global investment firm KKR, Apollo Global Management and Cerberus Capital Management.
Last week, the London-based bank said it has agreed to sell its Singapore life and health insurance business to Allianz. Blackstone's successful purchase would be the latest in a series of major acquisitions.
