The University of California is investing an additional $500m (€459.3m) in the $69bn open-ended Blackstone Real Estate Income Trust (BREIT).
Earlier this month, UC Investments, which manages $152bn of endowment, retirement, and cash assets for the university, acquired $4bn of class-I BREIT shares at their current net asset value.
The university agreed to remain invested until at least January 2028. From that date, it can begin to request redemptions. Blackstone, meanwhile, said it was committing $1bn to effectively guarantee a minimum annualised return of 11.25% over the six-year period.
At the time, Jon Gray, president and chief operating officer of Blackstone, said the investment would enable BREIT to continue to “deliver for its investors”. Blackstone said BREIT Class I shares had generated a 12.7% annualised net return since their inception six years ago.
UC Investments said the latest investment will have the same structure, terms, and fees as UC Investments’ initial $4bn investment, including an effective 6-year minimum hold period, and Blackstone will contribute an incremental $125m of its current BREIT holdings into the strategic venture.
Blackstone already manages $2bn of investments on behalf of UC Investments.
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