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Friday, 12 August 2016

Blackstone Moves into Non-Traded REIT Sector

The big kahuna of the real estate investment management world is looking to take its institutional platform to the retail world through a non-traded REIT. The vehicle, Blackstone Real Estate Income Trust Inc., will pursue core-plus investments focused on current income. It aims to raise $5 billion by selling shares, initially for $10 apiece.

Commercial Real Estate Direct Staff Report

Blackstone Group, the big kahuna of the institutional investment management world, is looking to capture a slice of the retail world.

The company, which has $356 billion of assets under management, has launched a non-traded REIT - its first foray into the sector.

It's aiming to raise up to $5 billion, including $1 billion through a dividend reinvestment program, through Blackstone Real Estate Income Trust Inc. The company will have a perpetual life, differentiating it from most other non-traded REITs, which typically have a target liquidity date by which they're supposed to sell their assets or merge with another company in order to provide liquidity to shareholders. And while it'll initially sell shares for the $10 that's typical in the non-traded REIT world, prices will move to a net-asset value basis after $150 million of shares are sold.

To be sure, Blackstone won't be the first institutional investment manager to tap the retail sector. It's preceded by LaSalle Investment Management, which in 2011 converted its Exelsior LaSalle Property Fund Inc. into a non-traded REIT, and Rreef America, which formed Rreef America Property Income Trust Inc. in 2012. Both of those also price their shares based on the companies'...


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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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