BREIT Fielding Offers for Bellagio Real Estate

Blackstone Real Estate Income Trust is fielding offers for half its interest in the real estate of the Bellagio Hotel in Las Vegas, according to multiple media reports.

The investment firm is considering its options and has not committed to a sale, according to the reports, citing people familiar with the matter.

As The DI Wire previously reported in November 2019, BREIT purchased the real estate assets of the luxury resort for $4.25 billion in a sale-leaseback transaction and joint venture with MGM Resorts International (NYSE: MGM).

Earlier this month, Blackstone Real Estate Income Trust Inc. sold the JW Marriott San Antonio Hill Country Resort & Spa in San Antonio, Texas for $800 million to Ryman Hospitality Properties Inc.

Over the last year, BREIT has experienced a large surge of redemption requests. In May, for the sixth straight month, the company reported that investor requests to redeem their shares exceeded the REIT’s 2% of net asset value monthly limitation.

In January 2023, the office of the chief investment officer of the Regents of the University of California and Blackstone (NYSE: BX) announced a long-term strategic venture in which UC Investments will invest $4 billion in Blackstone Real Estate Income Trust Inc.’s class I common shares, the largest existing share class. Blackstone will then contribute $1 billion of its current BREIT holdings as part of a “strategic venture” with UC Investments. The investment was increased by $500 million in Blackstone Real Estate Income Trust Inc. Class I common shares, the largest existing share class, with fees and terms consistent with existing BREIT shareholders.

Blackstone Real Estate Income Trust’s initial offering launched in August 2016 and has raised approximately $60 billion in three public offerings as of June 2022. The current offering has raised $6.6 billion, and as of April 30, 2023, its aggregate NAV was $69.7 billion.

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