Blackstone offers a 200 million euros return guarantee to finance the UK Railway Agreement

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Blackstone Group has offered a guarantee of yields to attract a large cash infusion to a real estate fund that limits the withdrawals in the middle of strong redemption requests for the second time in less than three years.

Blackstone, in March, gave the Special Guarantee of 200 million euros to a large Asian investor to win an investment of € 1 billion in its real estate collection in Europe, according to the securities archives and the people who know the subject.

The agreement is similar to a controversial agreement with the University of California to manage a flood of redemption by 2022.

The New York -based private capital giant offered a promise of annual profitability of 9.25 percent until 2030 to 200 million euros from its assets to attract investment in its European -owned income fund of Blackstone, which suffered a heavy but decreasing and has limited the removal in recent years, according to corporate archives.

Cash was used to acquire 50 percent participation in 5,000 UK railway arches From the TT group for 630 million euros, giving the world’s largest private capital group owned by the Arcs de Maó under the London railway lines. Blackstone and TT Group bought National Rail’s properties for 1.5 million pounds in 2019.

Blackstone reached the unusual promise of return because its evergreen funds throughout Europe have little money to make new investments, as they face high applications for ongoing redemption, according to those informed on this subject.

But Blackstone believed the opportunity to buy the participation of the railway arc for less than the price he paid for the other 50 percent, and the size of the commitment was worth offering special incentives, according to the people informed on this subject.

The investment of € 1 billion pushed 300 million euros for Bepif, which has about € 625 million in net assets, to make new investments, making a fund that has explained assets into a buyer in what Blackstone believes are the undervalued European real estate markets, according to people.

“This transaction consolidates our property in the Archco in an attractive assessment, while providing us with a substantial capital to unfold in a rich environment in opportunities for European real estate, benefiting all shareholders,” Blackstone said in a statement.

Blackstone recently raised a record of 9.8 million euros for its European institutional ownership fund.

But the agreement puts at risk the money of Blackstone and the controversy of the courts by giving special incentives to some of its investors.

It is similar to a large investment of $ 4.5 million that Blackstone received from the University of California Three years ago to cause a crisis to his flagist from Blackstone Blackstone Real Estate Trust, Breit, as he suffered a wave of exchange.

In this agreement, Blackstone pledged to $ 1.1 million Wide Actions against a promise that the fund would return by 11.25 percent annually until January 2028. The promise helped to attract billions in new investments in Breit, as other investors were removing money, which was the risk that the fund would have to shoot sale properties to satisfy withdrawals.

Many Blackstone followers and real estate funds criticized the agreement as unusual terms to a single investor. The other Breit investors have no assets to support their returns.

But they believe that the agreement helped Blackstone to manage one of the largest crises in its history of about 40 years.

Since the UC’s investment, redimensions in Breit have almost disappeared and the fund no longer has restrictions on investors seeking to leave. Blackstone has also been collecting regular management commissions in the investment of the UC.

But Breit performance has been reduced after an almost uninterrupted series of great gains. He lost money by 2023 and only registered a return of 1.95 percent by 2024, although he has still achieved annual returns of 9.4 percent since 2017.

This has led to the risk of Blackstone of delivering his Breit actions to the UC has increased substantially.

From March 31, Blackstone has registered a liability of $ 1 million at UC, according to Securities files. Accounting entry states that unless Breit’s returns improve in the coming years, it could be forced to deliver virtually all assets that he committed against his promise to return to the UC.