Blackstone Property Partners, a non-traded REIT largely comprised of institutional investors, has an outstanding backlog of 7% of its $73bn net asset value, the firm's president Jonathan Gray said on an earnings call yesterday (27 January), as reported by the FT.
This adds to the $6.8bn in redemptions from Blackstone's flagship REIT, which reported redemptions totalling about $6.8bn in the last two months of 2022.
However, the firm said it had only fulfilled $1.4bn, or 21% of the requests.
Last month, Blackstone limited redemptions from the fund following a surge in investor withdrawal requests.
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Gray said the firm expects increased redemptions throughout January, as some investors "are making larger requests than they actually want to achieve because they expect to be cut back".
"Institutional investors understand that liquidity comes from new inflows, and that is very different than the expectations in the private wealth channel," he added.
The firm's fourth-quarter distributable earnings fell 41% year-on-year, from $2.3bn to $1.3bn, while net profits from asset sales fell by 55% to $366.9m in Q4.