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UC Investments to Invest Additional $500 Million in BREIT Common Shares
Rhea-AI Impact
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Rhea-AI Summary
On January 3, 2023, UC Investments and Blackstone announced an expansion of their strategic venture, with UC Investments set to acquire an additional $500 million in BREIT Class I common shares. This follows their previous $4 billion investment, raising the total to $4.5 billion. The new investment is expected to close on March 1, 2023, maintaining the same terms as the initial investment, including a six-year minimum hold period. Additionally, Blackstone will contribute $125 million from its holdings into the venture.
Positive
Total investment in BREIT increases to $4.5 billion.
Strong commitment from UC Investments enhances BREIT's capital base.
Structural consistency with existing BREIT shareholder terms.
Negative
None.
OAKLAND, Calif., & NEW YORK--(BUSINESS WIRE)--
The Office of the Chief Investment Officer of the Regents of the University of California (“UC Investments”) and Blackstone (NYSE: BX) today announced an expansion of their long-term strategic venture. UC Investments will acquire an additional $500 million in Blackstone Real Estate Income Trust, Inc. (“BREIT”) Class I common shares with fees and terms consistent with existing BREIT shareholders. This follows the $4 billion investment by UC Investments into BREIT announced on January 3, 2023, bringing its total investment in BREIT to $4.5 billion.
This new investment, which is expected to close March 1, 2023 at BREIT’s public offering price on that date, will have the same structure, terms, and fees as UC Investments’ initial $4 billion investment, including an effective 6-year minimum hold period, and Blackstone will contribute an incremental $125 million of its current BREIT holdings into the strategic venture.
Simpson Thacher & Bartlett LLP is acting as BREIT’s legal counsel and Goodwin Procter LLP is acting as UC Investments’ legal counsel.
About Blackstone
Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $951 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, infrastructure, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, Twitter, and Instagram.
Forward-Looking Statements
This press release includes “forward-looking” statements and “safe harbor statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including those described in Blackstone’s and BREIT’s public filings with the Securities and Exchange Commission (the “SEC”). Blackstone and BREIT have based forward-looking statements on current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, any benefits expected to be achieved as a result of the transaction and statements regarding future performance. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include the risks and other factors described in Blackstone and BREIT’s annual reports for the most recent fiscal year and any such updated factors included in their periodic filings with the SEC, as well as those described under the section entitled “Risk Factors” in BREIT’s prospectus, each of which are accessible on the SEC’s website at www.sec.gov. In providing forward-looking statements, neither Blackstone nor BREIT is undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If Blackstone or BREIT updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.
What is UC Investments' recent investment in Blackstone (BX)?
UC Investments has announced an additional $500 million investment in Blackstone Real Estate Income Trust, raising its total investment to $4.5 billion.
When is the expected closing date for UC Investments' new investment in Blackstone?
The new investment is expected to close on March 1, 2023.
What are the terms of UC Investments' investment in BREIT?
The investment will have terms consistent with existing BREIT shareholders, including a six-year minimum hold period.
How much will Blackstone contribute to the strategic venture?
Blackstone will contribute an additional $125 million from its current BREIT holdings.
