‘s big retail real estate fund limited investor withdrawals in January after outsize redemption requests that appear to have totaled more than $5 billion.
Real Estate Income Trust, known as BREIT, said in a monthly statement posted Wednesday on its website that it filled 25% of investor withdrawal requests during January, in keeping with a policy of limiting monthly redemptions to 2% of the fund’s net asset value.
BREIT has $69 billion of net assets and is the largest nontraded real estate investment trust and one of the largest REITs, public or private. There is no public market in BREIT shares; redemptions are made by the REIT from cash on hand in a similar fashion to mutual funds.
Blackstone (ticker: BX) didn’t disclose the withdrawal requests, but Barron’s estimates them at roughly $5.5 billion and the amount redeemed at $1.4 billion.
This marks the third month in a row that BREIT has capped withdrawals. During December, BREIT faced $3.8 billion of withdrawal requests and met just 4% of them because it was up against a quarterly cap of 5%. BREIT limits investor redemptions to 2% of its net asset value monthly and 5% quarterly.
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