(Reuters) -Blackstone Inc’s $69 billion real estate income trust (BREIT) hit its monthly redemption limit in January, piling pressure on the flagship fund that has been attempting to regain investor confidence after an unprecedented blow last year.
In a letter to investors on Wednesday, the BREIT said it fulfilled repurchase requests for 2% of its net asset value, which was the limit, and accounted for 25% of the capital that investors were seeking to withdraw in January.
Shares of Blackstone were down 2.1% to $93.91 in early morning trade.
The asset management giant was forced to limit withdrawals from the fund in November after a surge in redemption requests over concerns around China’s economic prospects and political stability, two sources familiar with the matter told Reuters at the time.
The majority of the investors who had redeemed were from Asia and needed the liquidity, they had said.
Earlier this year, the BREIT got a $4 billion investment from the University of California after Blackstone committed $1 billion to boosting the university’s returns.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri and Shinjini Ganguli)
