The University of California is to buy a further $500m (£400m) of Blackstone’s Real Estate Income Trust in an extension to its $4bn (£3.3bn) strategic venture.
Under the initial deal, Blackstone will 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. Following the extension Blackstone will contribute an incremental $125m of its current BREIT holdings into the strategic venture.
The new investment is expected to close in March and will have the same fees and structure.
The Office of the Chief Investment Officer of the Regents of the University of California, less awkwardly known as UC Investments, announced the initial investment earlier this month.
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