Deals
Blackstone Enters Nontraded REIT Market With New Fund
- Move follows rule changes aimed at reducing conflicts, costs
- New REIT to invest in properties with stable rental income
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Blackstone Group LP is seeking to raise $5 billion for its first nontraded real estate investment trust, targeting individual investors in a market that has been plagued by conflicts of interests, high commissions and poor performance.
The move by the world’s biggest alternative-asset manager follows regulatory rule changes aimed at increasing transparency in the industry for nontraded REITs, which aren’t listed on exchanges and are primarily marketed by brokers to individual buyers. The rules include requiring such trusts to follow stricter guidelines on estimating the net asset values of their holdings and disclosing costs.