Blackstone Real Estate Income Trust (BREIT) has secured a $4bn (£3.3bn) investment from the University of California’s endowment.
The university and Blackstone have formed a long-term strategic venture through the deal, which will see the university’s UC Investments invest $4bn in BREIT Class I common shares.
Blackstone will then contribute $1bn of its current BREIT holdings to support an 11.25% minimum annualised net return for UC Investments over a six-year hold period.
Last month Blackstone limited redemptions on the fund after withdrawal requests soared.
Blackstone chief executive Stephen Schwarzman said the investment is a “validation of the fund’s strategy”.
Jagdeep Singh Bachher, University of California’s chief investment officer, said: “We consider BREIT to be one of the best positioned large-scale real estate portfolios in the US, managed by one of the world’s top real estate investors. This is an opportunity that comes only through strong, trusted partnership.”
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