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 filed a registration statement for its second follow-on offering. According to the preliminary prospectus, the offering will be comprised of $10 billion in Class T, Class S, Class D and Class I shares of common stock and $2 billion in distribution reinvestment plan shares.
Like its previous registration statement, Blackstone REIT plans to continue offering the same share classes, which each have different upfront selling commissions and ongoing stockholder servicing fees. Shares of each class will be issued on a monthly basis at a price equal to the prior month’s NAV per share, plus upfront selling commissions and dealer manager fees, where applicable.
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 the 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 the 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 the 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.
The minimum initial investment is $2,500 for Class T, Class S or Class D shares and $1 million for Class I shares.
The most recent NAVs per share were $10.77 per Class T share, $10.96 per Class S share, $10.82 per Class D share, and $10.93 per Class I share, all as of August 31, 2020.
Once effective, the offering will be the REIT’s third registered public offering. The initial public offering was declared effective in August 2016 and registered up to $5 billion shares of common stock and raised approximately $4.9 billion in investor equity. The follow-on offering registered up to $12 billion shares and had raised $8.4 billion, as of mid-September 2020.
As of the second quarter of 2020, the REIT had $36.6 billion of total assets, including $28.9 billion of real estate investments and $4.6 billion of real estate debt investments.
Blackstone Real Estate Income Trust, a perpetual life, monthly NAV REIT, invests in stabilized income-oriented commercial real estate in the United States and real estate-related securities. The company is headquartered in New York City and externally managed by BX REIT Advisors., a subsidiary of The Blackstone Group.