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.