Blackstone limits REIT withdrawals
https://therealdeal.com/2022/12/01/blackstone-limits-reit-withdrawals/?utm_source=internal&utm_medium=after_article&utm_campaign=related_article
Blackstone’s massive real estate fund is limiting withdrawals after a breach of its quarterly repurchase limit.
Blackstone Real Estate Income Trust is tightening redemption requests for the remainder of the quarter, Bloomberg reported. The REIT is already warning that repurchase requests could be limited or suspended in the first quarter.
Withdrawal demand recently exceeded 2 percent of the net asset value monthly limit and 5 percent of the quarterly threshold, according to the REIT. The withdrawal structure of the fund kicked in at that point to prevent a liquidity mismatch.
A rocky ride appeared to be on the horizon for BREIT. As of last month, inflows were slowing down and redemptions were rising. Rising interest rates are hindering the fund’s ability to make acquisitions and wealth advisors started cautioning clients against illiquid investments.
It’s a pain, but ya gotta read those prospectuses.