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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

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

RCA CPPI

 

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CMBS 2.0 Spreads

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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

 

 

 

REITCafe

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  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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