Blackstone Real Estate Income Trust Targets Another $10B
So far the non-traded REIT has made $8 billion worth of investments since its launch in 2016, when it raised $5 billion.
NEW YORK CITY–Blackstone Group’s non-traded REIT which it launched in August 2016, plans to raise an additional $10 billion in addition to the $5 billion that it raised in its launch, according to a Securities and Exchange Commission registration statement that was first reported by the Wall Street Journal.
The additional funds are necessary because the REIT sold its shares faster than expected and has acquired some $8 billion in assets, according to the Journal.
These deals have included last year’s purchase of a 21.7-million-square-foot industrial portfolio from a Cabot Properties fund for approximately $1.8 billion , its purchase of a 90% stake in Steadfast Income REIT ‘s LANDS portfolio for $460.8 million and its acquisition of a six-property, 2,514-unit apartment portfolio from TA Realty for $430 million among others.
Blackstone launched Blackstone Real Estate Income Trust as a perpetual-life fund with the goal of investing primarily in income-producing properties across the US, as well as some real estate-related securities.
Last year Robert A. Stanger & Co. reported that non-traded REITs were expected to end 2017 with a total of $4.2 billion in fundraising, a decline of nearly 79% from the sector’s 2013 peak of $19.6 billion, according to the CoStar Group. Stanger, though, also projected that non-traded REIT fundraising would increase by more than a third to $5.6 billion this year, due mainly to the number of institutional players entering the space.
Besides Blackstone, other entrants have included TIAA’S Nuveen Global Cities REIT, which filed a registration statement with the SEC just before the Christmas holiday weekend and Starwood Capital Group’s Starwood Real Estate Income Trust.