Blackstone Real Estate Income Trust Forms $265 Million Joint Venture
June 25, 2019 | Luke Schmidt | Blue Vault
On June 20, 2019, Blackstone Real Estate Income Trust (“BREIT”), a public non-traded REIT, formed a joint venture with Corporate Office Properties Trust (“COPT”), a publicly traded REIT, to acquire seven of COPT’s existing, single-tenant, data center shell properties for a total value of approximately $265 million. The properties contain a total of 1.2 million square feet of warehouse space. COPT received $238.5 million in proceeds in connection with the joint venture, which will be owned 90% by BREIT and 10% by COPT.
“We are excited to form this new partnership with Blackstone, and believe this transaction demonstrates the strength of demand for strategically located data center shell properties leased to high credit tenants, as well as the strength of our development platform,” stated Stephen E. Budorick, COPT’s President & Chief Executive Officer.
As of March 31, 2019, BREIT held an investment portfolio consisting of 491 properties and positions in 118 real-estate securities. The Company reported gross offering proceeds totaling $5,541.9 million through March 31, 2019, with $886.2 million raised in the first quarter of 2019.
On June 14, 2019, BREIT announced updated NAVs per share as of May 31, 2019. The new NAVs for Class D, Class I, Class S, and Class T shares are $10.91 (up from $10.83), $11.04 (up from $10.95), $11.06 (up from $10.98), and $10.86 (up from $10.78), respectively.
COPT owns, manages, leases, develops, and selectively acquires office and data center properties in locations that support the U.S. Government and its contractors. It also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics.
Sources: SEC, Blue Vault, Corporate Office Properties Trust Press Release
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