Blackstone’s $70 billion BREIT fund joins Starwood’s SREIT in the LODAS marketplace, where investors can today buy and sell shares
Overland Park, Kan., March 21, 2023 — LODAS Markets announced today that Blackstone Real Estate Income Trust (BREIT) is now trading on LODASMarkets.com.
“The first trade of Class D BREIT shares was executed in the LODAS marketplace at $14.42, which is equal to January's NAV and just below February's NAV of $14.47,” said Brian King, LODAS Markets CEO. “This is big news for investors as BREIT capped redemptions for the fourth straight month in February, redeeming just $1.4 billion despite receiving $3.9 billion in total requests.
“In both BREIT and Starwood REIT, we're attracting institutional buyers that have designated millions of dollars to these funds. It’s a significant opportunity for liquidity for investors who don’t want to wait another month to test their luck in redemption queues,” he said.
In February, LODAS announced that investors could trade Starwood Real Estate Income Trust (SREIT) in its marketplace. SREIT also limited withdrawals in recent months, leaving many investors in the approximately $15 billion fund scrambling for ways to convert their assets to cash. The LODAS marketplace has millions of dollars of institutional buy-side interest in SREIT, with some willing to buy at the current NAV.
"By introducing clients to the LODAS marketplace, I’ve given them a way to easily liquidate securities that they otherwise may have been unable to convert to cash,” said Brad Webb, an advisor with Second Level Capital in St. Louis. “My clients can open an account, place their shares for sale and execute their order all within minutes of me telling them about LODAS.”
Launched as Realto in 2021, LODAS operates the first fully automated online marketplace that matches buyers and sellers of alternative and real estate investments. It operates like an exchange where assets such as non-traded real estate investment trusts (REITs), business development corporations (BDCs) and private real estate investments are traded similar to corporate stocks.
LODAS stands for Liquidity On Demand As a Service. The name represents the company’s intent to provide investors of all kinds – from individuals to sponsors, to the world’s largest funds – with liquidity on their terms.
Today, the LODAS marketplace has nearly $1 billion in total buy-side interest and more than 30 funds being traded. All trades are paperless, potentially executed in a day, and settled in as quickly as five days. It’s significantly faster than the multi-week process that’s been the standard.
The LODAS marketplace can provide a reliable source of liquidity that helps investors and funds alike. Buyers and sellers of BREIT, SREIT and other funds can be matched in the LODAS marketplace. Investors can access immediate liquidity, while the number of redemption requests is potentially eased, along with the likelihood of funds having to sell other assets to meet demand.
Appetite continues to grow for sources of liquidity across tradable markets. Fundraising for non-traded REITs and BDCs reached $57 billion in 2022, which is more than triple the 2020 amount.
LODAS Securities, LLC Member FINRA / SIPC - LODAS Securities, LLC is a wholly subsidiary of LODAS Markets, Inc.
The information provided herein does not constitute an offer to sell securities or the solicitation of an offer to buy securities, which can only be made by the applicable offering document filed and registered with the appropriate state and/or federal regulatory agencies and sold by broker dealers authorized to do so. There is no guarantee that a market will develop for some securities, and as a result, they may remain illiquid.