The REITs and Real Estate M&A team advised The Office of the Chief Investment Officer of the Regents of the University of California (“UC Investments”) in connection with its $4 billion investment in the common shares of Blackstone Real Estate Income Trust, Inc. (“BREIT”). The shares were purchased by UC Investments in a private placement at BREIT’s January 1, 2023 public offering price, with fees and terms consistent with existing BREIT shareholders.
In addition, UC Investments entered into a separate strategic agreement with Blackstone (NYSE: BX) that provides for a waterfall structure with respect to the total return to be received by UC Investments on its investment in BREIT. As part of the agreement, Blackstone will contribute $1 billion of its current holdings in BREIT to support an 11.25% minimum annualized net return for UC Investments over an effective 6-year hold period. In exchange, Blackstone will be entitled to receive an incremental 5% cash promote payment from UC Investments on any returns received in excess of the specified minimum.
UC Investments is a money management firm based in Oakland, United States. Established in 2015, the firm manages a portfolio of investments that includes retirement, endowment, and cash assets.
Blackstone is one of the world’s largest alternative asset manager.
The Goodwin team was led by Yoel Kranz, David Roberts, Micheal Reagan and Ed Glazer, with assistance from Mark Lochiatto and Shaunt Kodaverdian.
For more details, read the press release and coverage in Law360.