Blackstone's BREIT Gets $4 Billion 'Buffett-Style' Bailout From University Of California

Source: https://www.zerohedge.com/markets/blackstones-breit-gets-4-billion-buffett-style-bailout-university-california
Published: Jan 3, 2023
Author: Mike Rivero
Post Date: 2023-01-03 20:08:51 by Horse
Views: 460

The $68 billion Blackstone Real Estate Income Trust (BREIT) will receive a $4 billion bailout cash infusion from the University of California. BREIT has been in turmoil for the last two months. Blackstone sent a letter to investment advisors and portfolio managers in late November to calm down wealthy clients after redemptions soared. The New York-based investment manager enforced a redemption cap of 2% of NAV that could be redeemed per month or 5% per calendar quarter to prevent further panic.

A statement from the Office of the Chief Investment Officer of the Regents of the University of California (UC Investments) and Blackstone announced a long-term strategic venture in which UC Investments will invest $4 billion in BREIT Class I common shares.

Blackstone and UC Investments have also entered into a separate strategic agreement that provides for a waterfall structure concerning the total return to be received by UC Investments on its investment. Blackstone will contribute $1 billion of its current holdings in BREIT to support an 11.25% minimum annualized net return for UC Investments over a 6-year hold period. 

Blackstone's terms for UC Investments should be terrifying for all BREIT investors. 

Post Comment   Private Reply

#1: Dakmar    To: Horse (#0)

But, but, it's perfectly normal for State run non-profits to bail out private companies.

Isn't it?

I am this close to doing a hostile takeover of zoning board, where I hope to gain control of DeutcheBank through a lien on local car dealers.

Dakmar posted on 2023-01-03 20:21:16   Reply   Private Reply

#2: StraitGate    To: Dakmar (#1)

You should consider grabbing the Lucas Oil Stadium while you're at it. Consolidate trips to your lawyer's office. Maybe drop some papers on the IMS on your way home.

StraitGate posted on 2023-01-03 21:03:54   Reply   Private Reply

#3: Dakmar    To: StraitGate (#2)

Good advice, I am thinking of using Indianapolis Public Library late fees to open a coffee shop once that old woman with the pushcart is zoned out of business.

Dakmar posted on 2023-01-03 21:10:36   Reply   Private Reply

#4: StraitGate    To: Dakmar (#3)

Excellent plan! But don't forget to file a Form USCC 221-L(a) at the courthouse first. If you play your cards right (avoid ALL CAPS!), you might even end up owning (or at least controlling) the Convention Center and the zoo.

No new fire trucks without Dakmar's signature!

StraitGate posted on 2023-01-03 21:30:12   Reply   Private Reply

#5: Dakmar    To: StraitGate (#4)

Yes! I will breed Dromedary Camels with fire trucks, that the latter may survive global warming!

Dakmar posted on 2023-01-03 21:37:57   Reply   Private Reply

#6: Dakmar    To: StraitGate (#4)

Would Bactrian Fire Trucks require an extra hydrant? Can I get a 730MM grant to study it?

Dakmar posted on 2023-01-03 21:41:30   Reply   Private Reply

#7: StraitGate    To: Dakmar (#6)

You should be able to get a Tee fitting and adapt to a single hydrant. But would that support the required flow rate? -- Looks like you'll need that grant to fund a study.

StraitGate posted on 2023-01-03 22:32:59   Reply   Private Reply