Blackstone Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by private equity giant The Blackstone Group (NYSE:BX), has registered its third follow-on offering with the Securities and Exchange Commission.
According to the pre-effective registration statement, the offering is expected to comprise $24 billion in Class T, Class S, Class D and Class I shares of common stock and $6 billion in distribution reinvestment plan shares.
Blackstone REIT launched its initial offering in August 2016 and has raised approximately $33.5 billion in three public offerings as of July 2021.
As of August 31, 2021, the REIT had $53.4 billion of real estate investments, $6.6 billion of real estate debt investments, and $4.3 billion of investments in unconsolidated entities. As of August 2021, its aggregate NAV was $38.3 billion and it had 2.9 billion shares outstanding.
Like its previous two offerings, Blackstone REIT plans to offer the same share classes, each with different upfront selling commissions and ongoing stockholder servicing fees. Shares of each class will be issued monthly at a price equal to the prior month’s NAV per share, plus upfront selling commissions and dealer manager fees. The minimum initial investment is expected to be $2,500 for Class T, Class S or Class D shares and $1 million for Class I shares.
As of August 31, 2021, Class T shares were valued at $13.02 each, Class S shares at $13.22, Class D shares at $12.99, and Class I shares at $13.20.
Class T shares have a maximum 3 percent selling commission and a 0.5 percent dealer manager fee. The shares 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 their total net asset value.
Class S shares include a maximum 3.5 percent selling commission and no dealer manager fee. The shares include a stockholder servicing fee equal to 0.85 percent per year of their total net asset value. Class T and class S shares are available to purchase through brokerage and transaction-based accounts.
Class D shares may include a maximum 1.5 percent selling commission and have a stockholder servicing fee equal to 0.25 percent per year of their total NAV. These shares are 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 are available for purchase by endowments, foundations, pension funds and other institutional investors, as well by REIT executives, directors, and their immediate family members.
In other company news, Blackstone REIT recently announced plans to purchase the real estate assets of The Cosmopolitan in Las Vegas for a reported $4 billion, in partnership with Cherng Family Trust and Stonepeak Partners.
Blackstone REIT invests primarily in stabilized real estate and to a lesser extent in real estate debt.