Blackstone Pulls Plug on CMBS Fund

Blackstone has decided to dissolve the Blackstone Real Estate Income Fund and related entities, which has a NAV of $550M and invests primarily in CMBS, RMBS, and mezzanine debt. 

  • In a regulatory statement, Blackstone said they believe that, “an orderly wind down would provide shareholders with the best path to maximize portfolio recovery while also providing shareholders with liquidity.”

  • Blackstone also mentions in the statement the fund’s assets have “begun to see a recovery in pricing since the recent trough related to the outbreak of COVID-19.”

  • However, CMBS has experienced decline in performance as $21B (904 loans) worth of CMBS was in special servicing as of June according to Fitch ratings.

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