The second follow-on offering for 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 been declared effective by the Securities and Exchange Commission.
Blackstone REIT originally planned to register $12 billion in securities, according to its September 2020 registration statement, but doubled that amount last month to $24 billion. The latest follow-on offering is comprised of $20 billion in Class T, Class S, Class D and Class I shares of common stock and $4 billion in distribution reinvestment plan shares.
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 on a monthly basis at a price equal to the prior month’s NAV per share, plus upfront selling commissions and dealer manager fees.
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.
Blackstone REIT’s most recent NAVs per share were $11.39 per Class T share, $11.59 per Class S share, $11.42 per Class D share, and $11.56 per Class I share, all as of December 31, 2020.
Blackstone Real Estate Income Trust originally registered $5 billion in shares and accepted gross offering proceeds of $4.9 billion from January 1, 2017 to January 1, 2019. The company later registered a $12 billion follow-on offering, and as of mid-January 2021, had received $10.2 billion in investor proceeds.
As of December 31, 2020, the REIT owned a property portfolio valued at roughly $37.7 billion and had positions in real estate-related securities and loans totaling $4.6 billion. The company invests in multifamily, industrial, hotel, and retail properties, and real estate-related securities and loans.