Blackstone exec sees light at the end of the REIT liquidity tunnel

Blackstone exec sees light at the end of the REIT liquidity tunnel
Firm's global co-head of real estate says bidders for real estate are coming back as costs of capital come down.
JUN 06, 2024
By  Bloomberg

Liquidity is coming back to the real estate market, with high-quality assets drawing more bidders than even a few months ago, according to Blackstone Inc.’s global co-head of real estate. 

“When you take an apartment building out to market today, we see three times as many bidders as we saw only six months ago,” Nadeem Meghji said Thursday in an interview with Bloomberg Television. “Buyers are seeing the cost of capital come down, and they’re seeing new supply come down. Liquidity is coming back into the private market.” 

The commercial-property market froze up last year as higher borrowing costs weighed on valuations. But buyers and sellers are starting to gain more confidence as deals are struck, bringing some visibility to what buildings are worth, and interest rates have steadied.

Meghji said Blackstone has seen that high-quality properties in the right asset classes today are still able to draw demand. And the firm has been able to pursue purchases, deploying nearly $20 billion of equity globally in just the last six months as now is the time to be “aggressive,” Meghji said.

But Blackstone hasn’t been immune to the commercial-property pain. After rival Starwood Real Estate Income Trust tightened its redemption limits last month, Blackstone’s $59 billion property trust saw an uptick in withdrawal requests

Meghji said that vehicle, Blackstone Real Estate Income Trust, has no plans to change its redemption structure

“We have more than $7 billion of liquidity,” he said. “We’ve proven over the last 18 months that the structure works as designed, and I want to be really clear that we have no plans to change that repurchase program and we have no plans to go below those limits.”

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.