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Blackstone: UC Deal Is Bullish For Apartment REIT Investors

January 8, 2023

Blackstone: UC Deal Is Bullish For Apartment REIT Investors

January 8, 2023

Blackstone: UC Deal Is Bullish For Apartment REIT Investors

January 5, 2023 | Blackstone, Inc.

On Tuesday, Blackstone (NYSE:BX) announced a massive $4 billion investment from the University of California Investments (UC) into its non-traded REIT (BREIT). This follows December’s news that Blackstone would limit redemptions due to outsized requests from investors to sell BREIT shares.

To secure the investment from UC, Blackstone provided $1 billion of return support (discussed below) which essentially amounts to a preferential guarantee. In my view, the giant $4 billion allocation from UC coupled with Blackstone’s willingness to provide a guarantee illustrates confidence in the outlook for US residential/multifamily and industrial real estate (which represent the bulk of BREIT assets).

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