Blackstone Real Estate Income Trust Fund Receives $4 Billion Investment from University of California for 6 Years with Minimum 11.25% Annualized Returns, Blackstone Offers $1 Billion as Collateral to Cover Shortfall to Meet 11.25% Returns
5th January 2023 | Hong Kong
Blackstone Real Estate Income Trust Fund (BREIT) $69 billion fund that had faced liquidity issue in late 2022, has received a $4 billion investment from the University of California with a locked-in period for 6 years with minimum 11.25% annualized returns, and with Blackstone offering $1 billion as collateral (Blackstone investments) to cover any shortfall to meet the 11.25% returns target. If Blackstone Real Estate Income Trust Fund (BREIT) achieves above the 11.25% hurdle rate, Blackstone will receive a 5% incentive fee. In late 2022, Blackstone Real Estate Income Trust Fund (BREIT) had limit withdrawal from the Blackstone Real Estate Income Trust Fund (BREIT). In November 2022, Blackstone Real Estate Income Trust Fund approved $1.3 billion of redemption, representing 43% of requests in November 2022. The $125 billion fund excluding debts, has a net asset value of $69 billion. In 2021 the 5th year of the fund, Blackstone Real Estate Income Trust Fund reported 28.7% returns, 12.4% returns for Class S Shares (Class S shares with sales load of 24.4%), and total asset value of $94 billion. The 3 years annualised return is 14.5% with no sales load. 82% of the fund is concentrated in Residential & Industrial and 73% is concentrated in the South and West regions of the United States. More info below.
“ Blackstone Real Estate Income Trust Fund Receives $4 Billion Investment from University of California for 6 Years with Minimum 11.25% Annualized Returns, Blackstone Offers $1 Billion as Collateral to Cover Shortfall to Meet 11.25% Returns “
Blackstone Limits Withdrawal from $125 Billion Real Estate Fund Following Increase in Withdrawal Request, Blackstone Real Estate Income Trust Fund Approved $1.3 Billion – 43% of Requests in November 2022
2nd December 2022 – Top private equity firm Blackstone with $951 billion AUM has limited withdrawal from its $125 billion real estate fund following an increase in withdrawal request in November 2022. Blackstone Real Estate Income Trust Fund approved $1.3 billion of redemption, representing 43% of requests in November 2022. The Blackstone Real Estate Income Trust Fund (BREIT) allows 2% of funds to be redeemed each month, and a maximum of 5% in a quarter. The $125 billion fund excluding debts, has a net asset value of $69 billion. In 2021 the 5th year of the fund, Blackstone Real Estate Income Trust Fund reported 28.7% returns, 12.4% returns for Class S Shares (Class S shares with sales load of 24.4%), and total asset value of $94 billion. The 3 years annualised return is 14.5% with no sales load. 82% of the fund is concentrated in Residential & Industrial and 73% is concentrated in the South and West regions of the United States. (AUM ~ Assets under Management)
About Blackstone Real Estate Income Trust
Blackstone Real Estate Income Trust, Inc. (BREIT) is a perpetual-life, institutional quality real estate investment platform that brings private real estate to income focused investors. BREIT invests primarily in stabilized, income-generating U.S. commercial real estate across key property types and to a lesser extent in real estate debt investments. BREIT is externally managed by a subsidiary of Blackstone (NYSE: BX), a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $319 billion in investor capital under management. Further information is available at www.breit.com.
Blackstone Real Estate Income Trust Fund Announcement
Blackstone on 1st Dec 2022 – Since formation nearly six years ago, BREIT’s Share Repurchase Plan (the “Repurchase Plan”) has allowed for repurchases up to 2% of net asset value (“NAV”) in any month and 5% of NAV in a calendar quarter, subject to BREIT’s majority independent Board of Directors’ broad repurchase discretion.1 This structure was designed both to prevent a liquidity mismatch and maximize long- term shareholder value.
BREIT received repurchase requests equal to 2.7% of NAV in October, or approximately $1.8 billion, and received approval from its majority independent Board of Directors to fulfill 100% of repurchase requests.2 BREIT has now received repurchase requests exceeding both the 2% of NAV monthly limit and 5% of NAV quarterly limit, triggering proration for the remaining 2.3% of NAV for the quarter. Accordingly, BREIT repurchased approximately $1.3 billion in November, equal to its 2% of NAV monthly limit and approximately 43% of each investor’s repurchase request. In December, up to 0.3% of NAV will be eligible for repurchase to total 5% of NAV for the quarter. If BREIT receives elevated repurchase requests in the first quarter of 2023, BREIT intends to fulfill repurchases at the 2% of NAV monthly limit, subject to the 5% of NAV quarterly limit.
Under the Repurchase Plan, unfulfilled repurchase requests will not be carried over automatically. Investors will need to resubmit any unsatisfied portion of their current repurchase request for repurchase in the future.
Blackstone Real Estate Income Trust, Inc. (BREIT) is a perpetual-life, institutional quality real estate investment platform that brings private real estate to income focused investors. BREIT invests primarily in stabilized, income-generating U.S. commercial real estate across key property types and to a lesser extent in real estate debt investments. BREIT is externally managed by a subsidiary of Blackstone (NYSE: BX), a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $319 billion in investor capital under management. Further information is available at www.breit.com.
About Blackstone
Blackstone is the world’s largest alternative asset manager with $951 billion in assets under management. With $283 billion of assets under management, Blackstone’s private equity business has been a global leader since 1985.
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