Published on 05/12/2022
Hodes Weill & Associates and Cornell University’s Baker Program in Real Estate conducted the Institutional Real Estate Allocations Monitor between May 2022 and October 2022. The survey was conducted among 173 global institutional investors, including pensions, insurance companies, sovereign wealth funds, endowments and foundations. with combined total assets of US$11 trillion. The survey found that these global asset owners saw their commercial real estate portfolio allocation drop from 10.7% in 2021 to 10.8% in 2022. The bottom line here is that there was no no expected increase in real estate, but rather that these investors have experienced outperformance. in commercial real estate compared to other asset classes like stocks and bonds, which have performed poorly in 2021.
Take profit and leave
Even Blackstone Inc. decided to limit fund withdrawals from its US$69 billion unlisted mega real estate income trust (Blackstone Real Estate Income Trust, Inc.) on December 1, 2022. This was after a series of requests redemption of funds. Blackstone’s unlisted REIT accounts for 17% of its earnings. Blackstone Real Estate Income Trust had total assets of US$145 billion as of September 30, 2022. Investors can redeem up to 5% of their holdings in one quarter. Blackstone Real Estate Income Trust is primarily focused on properties in the western and southern United States, with 55% being rental housing, 23% industrial properties and 7% net leasehold properties. Blackstone Real Estate Income Trust is heavily marketed to high net worth individuals.
Even the Starwood Real Estate Income Trust is trying to limit fund redemptions, as withdrawal requests have exceeded the REIT’s monthly limit.
Keywords: Blackstone Group Inc.
