The Blackstone Group (NYSE: BX), one of the nation’s largest institutional investment firms, is launching Blackstone Real Estate Income Trust, a $5 billion non-traded perpetual life REIT – a first for the company, according to a filing with the Securities and Exchange Commission.
Blackstone Real Estate Income Trust’s primary offering will include $4 billion in class T, class S, class D, and class I common shares, priced between $10.00-$10.35 per share, and $1 billion in shares allocated for the REIT’s distribution reinvestment plan.
Class T shares will have a 3 percent selling commission and a 0.5 percent dealer manager fee. The shares will also include an advisor stockholder servicing fee of 0.65 percent per year and a dealer stockholder servicing fee of 0.20 percent per year of the total net asset value.
Class S shares include a 3.5 percent selling commission and no dealer manager fee. The shares will include a stockholder servicing fee equal to 0.85 percent per year of the total net asset value. Class T and class S shares will be available to purchase through brokerage and transaction-based accounts.
Class D shares have no selling commission or dealer manager fees, but include a stockholder servicing fee equal to 0.25 percent per year of the total NAV. These shares will be available for purchase through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations.
Class I shares have no selling commissions, dealer manager fees, or stockholder servicing fees. The shares will be available for purchase by endowments, foundations, pension funds and other institutional investors, as well by REIT executives, directors, and their immediate family members.
The stockholder servicing fees run approximately seven years for class T and class S shares, and 35 years for class D shares.
The REIT is expected to invest in stabilized income-oriented commercial real estate in the United States. A special limited partner wholly owned by Blackstone will receive 12.5 percent fee of the REIT’s total return, after a 5 percent hurdle is met.
Blackstone, which currently manages various private investment funds and a publicly-traded REIT, has $356 billion in assets under management.