A $60 billion follow-on offering sponsored by Blackstone Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust managed by private equity giant The Blackstone Group (NYSE: BX), has been declared effective by the Securities and Exchange Commission. This is the REIT’s third follow-on offering.
Two weeks ago, the REIT doubled the size of the then pre-effective offering from $30 billion to $60 billion. The offering is comprised $48 billion in Class T, Class S, Class D and Class I shares of common stock and $12 billion in distribution reinvestment plan shares.
Blackstone REIT launched its initial offering in August 2016 and has raised approximately $46.1 billion in three public offerings as of December 2021. The current offering has raised $16.9 billion, as of mid-January 2022.
As of December 31, 2021, the REIT had $83.5 billion of real estate investments, $9 billion of real estate debt investments, $6 billion of investments in unconsolidated entities, and its aggregate NAV was $54.1 billion.
Like its previous two offerings, Blackstone REIT will offer the same share classes, each with different upfront selling commissions and ongoing stockholder servicing fees.
Shares of each class will be issued at 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 December 31, 2021, Class T shares were valued at $14.11 each, Class S shares at $14.30, Class D shares at $14.03, and Class I shares at $14.30. Shares were originally priced at $10.00 each.
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 Resource REIT Inc., a multifamily focused non-traded REIT, in an all-cash deal valued at $3.7 billion, including the assumption of debt.
Blackstone REIT invests primarily in stabilized real estate and to a lesser extent in real estate debt.