Blackstone has decided todissolve its Blackstone RealEstate Income Fund and related entities, which invest primarilyCMBS, RMBS and mezzanine debt, although recently it has built up astrong cash position, according to a regulatory statement.

|

In the coming weeks, Blackstone expects to seek shareholderapproval of the proposed dissolution. Blackstone "believes that anorderly wind down would provide shareholders with the best path tomaximize portfolio recovery while also providing shareholders withliquidity," according to the regulatory statement.

|

At $550 million NAV, the fund represents a small portion ofBlackstone's real estate assets under management.

|

CMBS, like many assets, swooned at the start of the pandemic.Recently, Blackstone reports, the funds' assets "have begun to seea recovery in pricing since the recent trough related to theoutbreak of COVID-19."

|

Nonetheless, CMBS is showingsigns of deep strain with $21billion of these loans transferred to special servicing sincemid-March, or more than double the value for all of last year,according to Fitch Ratings

|

Transfers to special servicers were highest in April and thenwent down in May to levels less than those in March, Fitchsaid.

|

In June Trepp reported that the delinquency and specialservicing rate for commercial mortgage-backed securities logged thelargest increase since the metric was introduced in 2009. 

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.