Blackstone triples fundraising goal for REIT

Firm now wants to raise $15B as opposed to initial $5B

Jun.June 12, 2018 03:45 PM

Blackstone CEO Jonathan Gray (Credit: iStock)

Blackstone Group is tripling its fundraising goal for the real estate investment trust it started last year.

The company said in its initial filing with the U.S. Securities and Exchange Commission that it planned to raise $5 billion for Blackstone Real Estate Income Trust but now says it will raise an additional $10 billion on top of this, according to the Wall Street Journal. The change is due to how quickly the REIT has been selling its shares so far.

The REIT has used the proceeds and debt to buy $8 billion worth of assets. These include more than 100 properties, largely made up of industrial real estate and rental apartment buildings.

Blackstone’s REIT is nontraded, meaning it is not bought and sold in the stock market. Investors generally hold onto them for a long time and then cash out when the company gets acquired or does its initial public offering.

The company entered the REIT game last year, when the industry was struggling to deal with bad publicity and high upfront fees. Other companies are now planning to launch nontraded REITs as well, including Starwood Capital Group, Oaktree Capital Management LP and Nuveen LLC.

Blackstone offers much lower management fees than other companies at just 1.25 percent. [WSJ] – Eddie Small

Related Articles

With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Commercial loans expected to suffer because of the pandemic (Credit: iStock)

March saw fewer CMBS delinquencies. That is likely to change: Fitch

(Credit: iStock)

Thousands of CRE borrowers call on banks for debt relief

Banks, funds, mortgage REITs, and agencies like Fannie Mae and Freddie Mac have all begun adjusting their lending approach in face of the economic downturn (Credit: iStock)

These are the sectors where real estate lending is still happening: report

Angel Oak Cos. CEO Michael Fierman and Flagstar Bancorp Inc. CEO Alessandro DiNello (Credit: Angel Oak, Flagstar, iStock)

Mortgage market dries up for unconventional home loans

A WeWork office (Credit: Alex Tai/SOPA Images/LightRocket via Getty Images)

WeWork offers rent discounts as incentive to secure long-term leases

Gary Barnett, Central Park Tower, and the Tel Aviv Stock Exchange Bull (Credit: Wikipedia, iStock)

Extell’s Israeli bonds put on downgrade watch