Blackstone has plans to triple the fundraising goal for its nontraded REIT, Blackstone Real Estate Income Trust, reports The Wall Street Journal.
The firm will raise an additional $10 billion on top of the initial $5 billion the trust said it would raise in its initial filing.
Fundraising for nontraded real estate investment trusts jumped to $938.1 million during the first quarter of 2018, a 6.9 percent increase compared to the $871.6 million raised in the fourth quarter of 2017, according to Robert A. Stanger & Co., an investment banking firm specializing in real estate and direct participation program securities. This represents the second fundraising increase in recent quarters, as nontraded REIT fundraising rose 10.5 percent from the third to fourth quarters of 2017.
Blackstone Real Estate Income Trust raised more than $1.8 billion in 2017, and $633 million in the first quarter of 2018, or approximately 67 percent of all funds raised by nontraded REITs in 2018.
Black Creek Group was in second with 6 percent of the market and $56.6 million raised, followed closely by Griffin Capital ($53 million with a 5.7 percent market share), CIM Group’s Cole products ($46.6 million with a 5 percent market share), and Carter Validus ($34.1 million with a 3.6 percent share).
Blackstone also leads NAV REIT performance over the 12-month period ended February 2018, posting a total return of 11.6 percent, before fees.
