The University of California has agreed to invest $4 billion into Blackstone Real Estate Income Trust.
The University of California agreed to invest $4 billion into Blackstone Real Estate Income Trust, a $68 billion nontraded REIT whose holdings include residential homes and warehouses.BREIT's semi-liquid structure has helped the firm attract a new class of individual investor, but a late-year redemption surge caused Blackstone to pause withdrawals; leading to a double-digit percentage decline in its stock price.
UC will receive a minimum 11.25% annual return, which also serves as a hurdle rate for BREIT's managers. If performance falls short, Blackstone will make up the difference, up to $1 billion. In exchange, UC committed to a six-year lockup.UC's injection into consumer-focused BREIT is most notable for how it reaches back into the classic private equity playbook. The massive size, the institutional origin and the illiquidity.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Blackstone offers backstop to lure University of California in redemption-stricken REITBlackstone Inc on Tuesday said it had secured a $4 billion investment from the University of California in its unlisted real estate income trust (BREIT) that has been plagued by investor redemptions, after the private equity firm committed $1 billion to backstop the university's returns in the fund.
Leer más »
Blackstone COO Jon Gray on BREIT redemptions: We knew there would be periods of volatility'It is a $4 billion common equity investment into BREIT with an effective minimum hold period of six years,' Jon Gray, Blackstone president and COO, says of the University of California's latest investment.
Leer más »
Blackstone’s clever REIT deal punts big questionA $4 bln investment in its real-estate fund shows Blackstone can pull in big-name money on good terms for itself. It doesn’t, though, prove the fund’s assets are worth what they claim to be. Steve Schwarzman’s firm has firepower aplenty, but hasn’t answered valuation qualms.
Leer más »
Teenage pilot makes emergency landing near California freewayHe landed safely after ‘tuning out’ his crying grandmother.
Leer más »
Teenage pilot makes emergency landing near two-lane highway in CaliforniaA teenage pilot flying a single-engine plane with several family members on board made an emergency landing near a two-lane highway in the San Bernardino National Forest in California on Monday.
Leer más »