Blackstone's stressed real estate investment trust (BREIT) targeted the individual investor. Many investors wanted out after publicly traded REITs fell significantly and Blackstone's REIT valuation rose slightly.
That caused a BREIT run forcing Blackstone to limit withdrawals, which made more investors want out. Ironically a major investor rode to the rescue. Bloomberg reported:
"...the University of California will inject the $4 billion into BREIT and Blackstone will backstop the university system’s investment by $1 billion if returns fall short of a goal. If the investment generates more than 11.25% annualized net returns, Blackstone will receive a higher payment from the university system. Blackstone will make money on the deal if returns are at least 8.7%, the company said."
Weren't the PEU boys supposed to save public pensions and foundations, not be rescued by one?
Update: Bisnow reported:
Following in the footsteps of some major nontraded U.S. REITs, BlackRock plans to defer redemptions from its $4.2B BlackRock UK Property Fund for the third quarter of 2022.
Update 1-19-2023: KKR gated its real estate trust due to higher requests for withdrawals than the allowed 5% per quarter.
