Blackstone blocks withdrawals from property fund

THE world’s largest private equity fund has limited investor withdrawals from its $125bn (£102bn) real estate fund.

Us-listed Blackstone said withdrawal requests at the Blackstone Real Estate Income Trust (BREIT) exceeded its quarterly limit, forcing it to tell some investors they could not have their money back immediately.

BREIT only met 43pc of redemption requests in the Blackstone Real Estate Income Trust (BREIT) during November, it said, sending shares down 8pc.

In October, BREIT received $1.8bn in redemption requests and has already received redemption requests in November and December exceeding its quarterly limit. The fund’s withdrawal structure is designed to prevent a liquidity mismatch and stop a fire sale of assets to raise cash.

Blackstone is a major player in the US real estate market and grew rapidly in an era of low interest rates by snapping up private apartments, houses and college dormitories. But as interest rates climb and the economic outlook darkens, the fund’s fortunes have floundered.