Blackstone Explores Secondary Sale for $11B Fund

Blackstone is exploring a secondary sale for investors seeking to exit a U.S. fund managed by its Blackstone Property Partners strategy, which has about $11 billion in net asset value. The firm is taking an unusually active role in connecting existing investors with prospective buyers, allowing them to obtain liquidity without forcing the fund to sell properties. The move follows higher interest rates, declines in commercial real estate values and increased redemption requests across open-ended property funds. BPP, a roughly $57.7 billion strategy investing in assets including industrial, office, residential and data-center properties, has reduced management fees for investors who limit redemption requests and has reported early performance improvements. Secondary transactions and tender offers are gaining traction across the sector as managers seek alternatives to selling assets at depressed prices, though investor concerns remain while property values sit below their 2022 peaks.