– Blackstone BREIT Redemption Requests Surge To $4.5 Billion, Only $666 Million Granted:
With the beginning of a credit event triggered by the Federal Reserve’s aggressive rate hike cycle, which has already claimed at least three smaller US banks and initiated an unprecedented surge in deposit bank runs, the commercial real estate market might be the next shoe to drop.
For the fifth consecutive month, Blackstone’s $71 billion real estate income trust (BREIT) has restricted redemption withdrawal requests in March, according to Bloomberg, citing a letter from the PE firm.
Last month investment advisors of high-net-worth individuals asked Blackstone to redeem $4.5 billion from BREIT, but the PE firm only allowed $666 million to be withdrawn, or about 15% of what was requested. In February, advisors tried to pull out $3.9 billion.
Blackstone limits withdrawals to approximately 5% per quarter. Having already reached 2% monthly caps in January and February, investors were left with a much narrow exit route in March.
However, should rates keep rising, it is likely that the April redemption flood will continue.
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